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Ethanol Boom, Rising Prices Divide Corn Lobby

ethanol-corn-farmer.jpg

MSNBC:
As a chief advocate for corn farmers around the country, Rob Litterer will be working the halls of Congress this fall to push for increased ethanol production. But he’s facing stiff opposition from what on the surface seems an unlikely source — the farm lobby.

The burgeoning ethanol industry is creating a wave of prosperity for rural towns throughout the Midwest, but the energy bonanza is also pitting farming groups on separate sides of the fence.

Corn farmers are pushing for more ethanol production as the industry creates an enormous new market for their crop, giving corn prices the kind of lift they haven’t seen in years. But the corn farmer’s win is the hog farmer’s loss. Meat, dairy, and other food producers are pushing back against the ethanol boom as higher grain prices cut into their already slim profit margins.

So as Litterer, incoming president of the National Corn Growers Association, visits with members of Congress in coming months, he knows that meat and dairy lobbyists will be close behind, delivering the opposite message.

“There is no question they have a policy that they are opposed to an increase,” Litterer said. “But I don’t think their opposition carries any water.”

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