FOR IMMEDIATE RELEASE: July 2, 2008

CONTACT: Becky Grisham, Missouri Corn Growers Association, (573) 893-4181 or (800) 827-4181

HIGHER GAS PRICES FOR MISSOURI?

(JEFFERSON CITY, Mo.)--Political schemes to remove the statewide ethanol standard will sharply increase prices to consumers, drain dollars from already tight household budgets and play directly into the hands of foreign oil cartels, says Missouri Corn Growers Association CEO Gary Marshall.

"By utilizing corn-based ethanol in gas pumps throughout the state, Missouri consumers have earned bragging rights for having the cheapest gas in the nation," states Marshall. "By design, the use of ethanol as required by the Missouri Renewable Fuel Standard works only to lower the cost to consumers. The law is written with a price trigger that if ethanol is ever priced higher than gasoline, marketers are not required to use the high performance fuel."

With ethanol at the state's farmer-owned cooperatives selling at more than a dollar a gallon discount to regular gasoline, it is the only cost-effective substitute in today's tight market, Marshall points out. Removing the ethanol requirement in Missouri would only increase prices at the pump for already hurting consumers.

At the national level, corn-based ethanol production represents 7 percent of the gasoline supply. A recent analysis by Merrill Lynch shows that gasoline prices would be 10 to 15 percent higher without the ethanol supply in the marketplace. That translates into ethanol helping hold down gasoline costs to American drivers by 60 to 70 cents per gallon.

With world oil prices recently topping an all-time high of $140 a barrel, the dangers of a fossil-based energy source are becoming readily apparent. Research by Texas A&M University states the underlying force driving changes in the agricultural industry, along with the economy as a whole, is overall higher energy costs.

"America's need to import well over half of its crude oil, much from hostile foreign nations, is crippling our economy at a time of a weakened dollar and increasing domestic inflation," Marshall says. "The production and purchase of domestically produced ethanol keeps a growing portion of that wealth here at home."

Marshall believes that in addition to hurting consumers, today's escalating oil prices are impacting businesses and increasing grocery bills.

"While commodities are a small factor, fuel costs alone represent more than twice the value of corn contained in each box of corn flakes," Marshall states. "The price of groceries is heavily dependent upon energy for processing, packaging, and transportation - energy derived from expensive oil."

The U.S. Department of Agriculture reports that 81 cents of every food dollar goes towards expenses such as labor, packaging, advertising, transportation and energy costs. On-farm expenses are less than 20 percent of the real cost of food. Less than 1 percent of the corn planted is the sweet corn people purchase fresh, frozen or canned for eating.

"With energy and food prices at record levels, the wealthy oil and food companies are looking for a scapegoat while they rake in record profits. Politicians joining the fray with short-sighted strategies intended for political gain simply add insult to injury. Ignoring ethanol's benefits and throwing Missouri farmers under the bus is no way to solve today's energy crisis," summarizes Marshall.

To learn more about corn and ethanol production in Missouri, visit www.mocorn.org.