PUBLISHER'S VIEWPOINT
August 2008
Corn For People, Not Ethanol

I love farmers. Really. But without question, it is time we, the American people, shut down the Federal subsidies and mandates that are funneling a quarter of our corn crop to make ethanol for our cars and SUVs. We should do it for moral reasons: Food comes before fuel on the hierarchy of needs. The run-up in food prices is inconveniencing most Americans. Less fortunate folks other places are starving.

We in foodservice equipment and supplies should urge the changes for selfish reasons, too: The run-up in food prices is undercutting both consumer spending on restaurants and undermining the margins and cash-flow foodservice operators need to buy equipment and supplies. In plain language, the increase in food costs is threatening our business, not just here in the United States, but worldwide.

"It's time E&S folks work with NRA to get rid of Federal corn-to-ethanol subsidies and mandates."

You may have missed it, but the National Restaurant Association has already gone on record urging Congress to revisit the mandates and subsidies that went into effect with the Energy Independence and Security Act of 2007. NRA says simply that higher food prices are undermining its members' business. The organization also has joined more than 20 food and foodservice associations, commodities boards, anti-hunger organizations and environmental groups in the Food Before Fuel Campaign to push for a reduction and/or elimination of the mandates and subsidies. For info on the campaign, go to www.foodbeforefuel.org.

NRA's actions led to an interesting tit-for-tat exchange in June, when Sen. Charles Grassley, the Republican senator from Iowa, and NRA Pres. and CEO Dawn Sweeney exchanged letters. Grassley called Food Before Fuel a "smear campaign." Sweeney wrote him back June 10 and begged to differ, pointing out NRA was one of the few groups that warned before the '07 law was passed that ethanol mandates and subsidies might increase food prices.

But Sweeney's point about corn-for-ethanol is important. According to agricultural economist Bill Lapp, who spoke June 25 at Technomic's Restaurants 2008 Conference in Rosemont, Ill., ethanol now consumes more than more than 26%. of the 88 million-acre U.S. corn crop. And the mandates call for another nine million acres to convert to ethanol by '15. Lapp also pointed out beef, poultry, pork and egg producers have eaten the two-and-a-half time run-up in feed corn prices the past two years, but won't this year. That means protein prices will follow the upward surge.

We urge each of you, as well as the associations on the equipment and supplies end of the business, to support the Food Before Fuel Campaign. It's the right thing to do, and all our livelihoods are affected.

Cheers,


Robin Ashton
Publisher