Kansas Feed, Food & Fuel

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Kansas Corn Growers Association News Release

5-16-08--Rumors of Ethanol Disinformation Campaign Prove to Be True
In early May, the Kansas Corn Growers Association put out a news release pointing to rumors of a multi-million dollar public relations campaign against ethanol funded by the food manufacturing industry. This week, Roll Call, a Capitol Hill newspaper, outed the Grocery Manufacturers Association’s smear campaign. On Thursday, Iowa Senator Charles Grassley went a step further, making a statement about the campaign on the Senate floor. The Senator also posted the GMA request for proposal as well as the public relations campaign proposal from Washington, DC firm Glover Park which was one of the P.R. firms hired for the job.

The Kansas Corn Growers Association along with the National Corn Growers Association thanked Senator Grassley and Roll Call for reporting on the disinformation campaign. Corn growers will continue to combat these well-funded public relations campaigns with facts.

“Commodity prices account for less than 20 percent of the cost you pay for food at the checkout. Even today’s higher commodity prices have very little effect on the price of food. The other 80 percent of the grocery costs which include transportation, packaging and processing are greatly affected by rising energy costs,” according to KCGA Executive Director Jere White. “We’re not saying it doesn’t cost more to produce groceries today, but main culprit is not the farmer, not higher grain prices and not ethanol.”

The public relations proposal prepared for GMA suggested several tactics.

“First, we must obliterate whatever intellectual justification might still exist for corn-based ethanol among policy elites. ... Second, we must demonstrate to policy makers at the state and federal level that there is a political price to allowing ethanol policy to drive up the cost of food,” the Glover Park firm’s proposal stated.

Senator Grassley read a statement on the Senate floor Thursday chastising GMA for its tactics.

“They’ve outlined their strategy of using environmental, hunger and food aid groups to demonstrate their contrived “crisis,” Grassley said. “I think it’s important for policy-makers and the American people to know who’s behind this effort.”

The GMA has already been successful in getting this misinformation into stories by the national and regional news media outlets

“We are asking the public and our policy makers to look past the rhetoric and misinformation being manufactured by high powered Washington DC public relations firms, and simply use some common sense and look at the facts,” White said. “Look at your own budget—the main driver in increased spending in your house is higher fuel and energy costs. The same holds true for grocery manufacturers and for farmers alike. It doesn’t make sense to go after the ethanol industry, which is adding 7 billion gallons of refined fuel to our nation’s energy supply. Without ethanol, our energy costs would be even higher.”

NCGA President Ron Litterer said corn growers were disappointed the food manufacturers took this action.

“It is simply unfathomable that food companies through the Grocery Manufacturers Association chose to smear their farmer-suppliers rather than cooperate with us to meet the growing challenge for America’s fuel needs,” Litterer said. “Unfortunately, from what we’ve heard this is not the only campaign in the works to place the blame on agriculture.”

Kansas Corn Growers Association News Release

5-5-08-Consumers to Pay for Several Months of Corn, Ethanol Bashing
Despite several research studies showing that ethanol production and higher corn prices have only a small effect on consumer prices, anti-ethanol forces have teamed up to sway public opinion against farmers and the fuel they produce. The Kansas Corn Growers Association believes facts, not well-funded public relations campaigns, should prevail.

“We are hearing that the Grocery Manufacturers Association (GMA) has embarked on a multi-million campaign through a Washington, DC public relations firm to turn public opinion against corn-based ethanol,” according to Kansas Corn Growers Association Executive Director Jere White. “Several credible studies released this year show high fuel prices have a much greater impact on food prices than higher corn prices.”

White said consumers are wondering why there has been little connection made between fuel prices and grocery prices.

“That’s where the story gets interesting. In addition to GMA, we are told the oil industry has chipped in millions to the campaign as well,” White said. “Consumers are paying higher prices at the pump and at the checkout. Then the oil companies and food companies are using that money to blame ethanol for higher food and fuel prices.”

While corn and ethanol producers have the facts on their side, it will be difficult to beat a multi-million campaign aimed at rolling back the advances made by the ethanol industry, much of which is owned by growers. Corn growers have been working to make sure the public is receiving both sides of the story.

“Corn and ethanol producers simply don’t have millions of dollars to spend on glossy PR campaigns,” White said. “What we do have are facts: several studies showing that ethanol production and higher corn prices account for just a fraction of the increase consumers are paying at the grocery store. Commodity prices account for less than 20 percent of the cost of groceries, the rest is transportation, packaging, marketing and other factors. Plus, ethanol actually reduces the cost of gas for consumers at the pump”

While food prices are higher, White points out prices for non-food items are also higher, including things farmers purchase to grow their crops like fuel and fertilizer.

“It doesn’t take much common sense to understand that the big driver in increased grocery prices is fuel prices,” White said. “Sure you’re paying more for food, but you’re also paying more for laundry soap and toilet paper. Production and transportation costs are up primarily because of increased fuel prices—especially diesel prices. The real story is $120 crude oil and the foreign regimes it supports. It is time we say enough and support America first.”

Laugh and learn something about low ethanol emissions: Illinois Corn You Tube video

RESOURCES
Kansas Corn and Grain Sorghum websites
Kansas Ethanol Information
A Quick Look at Kansas Ethanol Production
National Corn Growers Association
National Sorghum Producers
Ethanol Promotion and Information Council (EPIC)
Renewable Fuels Association (RFA)
RenewableFuelsNow.org
foodandfuelamerica.com