Wisconsin Bio Industry Alliance

Ethanol derived from corn has been blamed for rising costs of animal feed for livestock farmers. However, this is false. Here are some facts:

Ethanol facilities only utilize the starch portion of the corn kernel, using the protein to produce a high-quality livestock feed called dried distillers grains (DDGs).

An average dry-mill ethanol plant will produce 17 pounds of DDGs from a single bushel of corn, and in 2007-08, the ethanol industry is expected to produce over 25 million short tons of DDGs. [Source: Iowa State University, “Ethanol Coproducts for Cattle,” March 2008; Iowa State University, “Estimated U.S. Dried Distillers Grains with Solubles Production & Use,” updated 11/11/2008]

In addition to having a higher nutritional value, DDGs are also significantly cheaper per ton than corn or soybean meal, two other common livestock feeds. DDGs are currently trading around $125 a ton, compared to approximately $136 for a ton of corn or $260 for a ton of soybean meal. [Source: USDA. DDG (Lawrenceburg, IN); Corn (Cent. Illinois); Soybean Meal (Illinois points)]

The 2009 Federal Renewable Fuel Standard has been increased for the coming year.

In 2009, the standard will be 10.21%, or 11.1 billion gallons of renewable fuels that will be blended into gasoline. The 2008 standard was 7.76%, or approximately 9 billion gallons.

For more information, please visit the Environmental Protection Agency website.

Most people know what biodiesel is – a renewable fuel made right here in Wisconsin from a variety of feedstocks. But not as many people know how it is made. Here are some facts:

• Biodiesel is made from a process called transesterification – which separates fat or vegetable oil into methyl esters glycerin.

• Methyl esters is the chemical name for biodiesel, which can be used in diesel engines, while glycerin is sold and used in soap, as a food preservative, or as a thickening agent, amongst other uses.

While people frequently refer to vegetable oil used for fuel as “biodiesel,” it is not. While straight vegetable oil (SVO) can be burned in specially modified diesel engines, biodiesel is a much more refined product that can be used in any diesel engine.

Corn-based ethanol has often been blamed for the increase in food costs. However, since June corn prices have dropped at dramatic rates while the price of food is expected to keep rising. Here are some facts:

• Corn prices have plunged over 50 percent since peaking at record highs in late June.
  
  
• The closing price for corn futures on November 10 was $3.83 per bushel, $4.05 lower than the peak price of $7.88 on June 26. [Source: Chicago Board of Trade]
  
  
• Meanwhile, while USDA predicts that food costs will increase 5% in 2008 and another 5% in 2009. [Source: USDA Economic Research Service, http://www.ers.usda.gov/Briefing/CPIFoodAndExpenditures/Data/cpiforecasts.htm, accessed 11/11/08]

POET and other leading ethanol producers from around the country announced the launch of a new organization, Growth Energy, at a press conference at the National Press Club today.

The group has already released a policy paper, noting that ethanol has not been responsible for rising corn costs in the past, and corn costs have not been the main culprit behind rising food costs. The paper can be viewed by clicking here: Growth Energy Policy Paper.