The Iowa Corn Growers Association (ICGA) has welcomed a new study from the Consumer Federation of America (CFA) that explores the advantage to consumers in expanding the production of liquid fuels like ethanol. “We’ve seen a lot of misinformation being peddled about ethanol and gasoline,” said Jim Meyer, a corn grower and ICGA director from Odebolt. “It’s refreshing to see a consumer-focused group like the CFA setting the record straight.”

The CFA study, “Big Oil v. Ethanol: The Consumer Stake in Expanding the Production of Liquid Fuels”, finds that current record gasoline prices are due to a shortage of refinery capacity, not the price of crude oil and that the oil industry is contesting the growing support for ethanol because ethanol poses a challenge to the oil industry’s market dominance.

Oil industry threats to offset ethanol production with cuts in refinery expansion and with policies that limit ethanol distribution should be taken seriously, the study concludes, saying the threats “demonstrate [the oil industry’s] unchallenged power and …ability to limit competition.”

“Corn growers have promoted ethanol for 30 years, and we’ve seen plenty of evidence of the myths circulated about ethanol,” says Meyer. “It’s good to get this confirmation about energy pricing from a group known for putting consumer interests first.”

The CFA report is available on the internet at http://www.consumerfed.org/pdfs/Ethanol.pdf.