MYTH: Increased ethanol production will deplete our food and feed source and force us to till up virgin land.

FACT: New seed and equipment technology and improved practices are improving yields, allowing farmers to supply needed food, feed and fuel while using less land.  There is enough corn for food, feed and fuel—in fact; there is more food per capita today on a global scale than ever before, according to the Food and Agriculture Organization of the United Nations.  There are, however, distribution problems in some Third World countries, which have more to do with politics and infrastructure, than U.S. commodity production or Farm policies.

MYTH: Ethanol is the main reason for rising food costs

FACT: The skyrocketing price of crude oil has more to do with your food costs than anything else; a barrel of crude was selling on the market for $65 in 2005, but is currently hovering well above $100 a barrel. Those transportation costs to get your food to the grocery stores, as well as packing and marketing costs have four times the impact on food costs than corn.  In fact, according to the USDA, farmers only receive five cents from a dollar spent on a loaf of bread.   

MYTH: Petroleum drilling is the best option for the world’s energy needs.

FACT: There is a finite amount of fossil fuels; the Earth isn’t making more of them.  When you consider that the U.S. uses nearly 150 billion gallons of gasoline a year, it’s clear that home-grown biofuels are a key component in preventing shortage at the pump.  It’s a piece of the puzzle, just as wind, solar and nuclear energy can also help end our nation’s reliance on foreign oil.  More research is needed ot increase the efficiencies of ethanol and study the economic and environmental impacts.                                        

MYTH: Economically, farmers are the only ones benefiting from ethanol.

FACT: Ethanol production is keeping fuel prices low for everyone.  In late March, 2008 Francisco Blanch, a commodity specialist for Merrill Lynch, told the Wall Street Journal that oil and gasoline prices are about 15% lower as a result of increased biofuels output.  Blanch said without biofuels, oil price today would likely be around $115 a barrel instead of around $102.  That means the average gallon of gasoline in the U.S. would be 45-cents higher, without biofuels on the market.

MYTH:  Ethanol can’t be shipped by pipeline and therefore, can’t reach the markets that need it.

FACT: Ethanol can be shipped via pipeline.  Currently, two leading pipeline companies—Magellan Midstream Partners and Buckeye Partners are exploring the feasibility of constructing a dedicated ethanol pipeline to connect biofuels plants in Midwestern states to population center sin the eastern U.S.  A dedicated pipeline means it would only be used for ethanol.