AND ON THE FIFTEENTH, WE GET NEWS ABOUT E-15

We couldn’t have scripted it better had this been the story line of a movie. Here on the 15th day of January, the United States Court of Appeals for the District of Columbia Circuit denied petitions for rehearing in the case of the Grocery Manufacturers Association, et al. v. EPA, which challenged the decision by the Environmental Protection Agency to permit the commercial use of E15. Get it? News about E-15 on the 15th? Yup, we’re pretty easy to entertain here at the IL Corn offices!

All that legalese up above boils down to this: another court threw out the nonsensical challenges to E-15, a blend of fuel made from 15% ethanol and 85% petroleum based fuels. In the late summer of 2012, the U.S. Environmental Protection Agency approved E-15 as a new fuel for cars and light trucks, model years 2001 and newer, along with flex-fuel vehicles.

In this case, there were those in the food industry that unsuccessfully tried to resurrect the worn-out argument that ethanol raises food prices. Although one can understand how someone might come to that conclusion based on so much bad information that is available on the topic, it doesn’t make it right.

Wasn’t it Mark Twain that said, “Never let the truth get in the way of a good story.” Boy, that’s appropriate in the case of ethanol, for sure.

Here are some great points to keep in mind if you hear arguments against ethanol, its performance, its ability to lessen our dependence on foreign energy, its benefits to the local economy, and the fact that it’s renewable.

  • Without ethanol, gasoline would cost $0.20-$0.35 cents more per gallon.  That      translates into an additional $6.00-$10.50 to purchase 30 gallons a month. (Source: U.S. Dept. of Energy, 2008)
  • The U.S. Ethanol industry accounts for only 3% of the world’s grain supply on a net basis, and none of its food supply. (Source: USDA and Renewable Fuels Association)
  • In the U.S., only about 1% of the corn  grown is needed to meet the demand for direct human consumption (sweet corn).  Less than 10% of the field corn grown is needed for processing for food uses.  Sweet corn, in fact, is consumed in only a small percentage of the world’s countries.
  • One-third of the corn that goes into  ethanol production is recycled into the food chain as ready-made livestock  feed, a byproduct called Dried Distillers Grains (DDGS).  DDGS has a higher protein concentration  than pre-ethanol corn, making it more efficient as animal feed.
  • Corn is not the sole food source for  livestock.  Up to 25% of swine feed and up to 30% of cattle feed is comprised of soybean meal.  94% of U.S. soybeans are made into      animal feed, but only about 40% of U.S. corn goes to animals.

1-15-13 pie charts

Braid Terry_Tricia  mugshotTricia Braid
ICGA/ICMB Communications Director

NASCAR SPEEDS ETHANOL TO A RESPONSIVE FAN BASE

The question has been posed to the IL Corn office and farmer leaders on more than one occasion…”Why is it a good idea to get involved in a NASCAR sponsorship?”

Fair question.  The answer may seem obvious if you’re one of NASCAR’s more than 80 million fans in this country. Or maybe you’re a fan, but you’re not really sure of the answer, either.

It’s a pretty simple answer. NASCAR delivers an audience unlike any other.

NASCAR fans are more likely than any other sports fans to support sponsor messages.

NASCAR fans are more likely to purchase the products that are responsible for their sport’s sponsorship.

NASCAR fans are more likely to influence their friends to do the same thing.

The bottom line to this story is the Start/Finish line at a NASCAR race. It’s all about the fans.

Take a look at this chart. Not only do NASCAR fans deliver on their promise to support race sponsors, but the sport itself generates media coverage that can’t be bought.

In the case of ethanol, NASCAR was responsible for a huge portion of the news coverage that included ethanol, much more than what the ethanol industry or corn farmer organizations could have generated themselves.

2011 brought E15 to NASCAR race cars and trucks. 2012 will bring it to a gas pump near you. And for the NASCAR fan, they’ll be chomping at the bit to fuel up with the same high-performance fuel that their favorite driver uses.

Tricia Braid
ICGA/ICMB Communications Director