By TIM THORNBERRY
Kentucky Correspondent

WASHINGTON, D.C. — There are no cornfields in the nation’s capital, but it seems to be on the minds of many there. From those paid to lobby for growers to the halls of Congress, all the way to the White House, corn is getting quite a bit of press.

And rightly so, it seems; corn has become somewhat of a super crop. It can be used for food and fuel and is one of the top crops in the nation in terms of value. With corn prices being strong right now, it is also profitable for growers.
Much of the buzz about corn is coming with interest in ethanol. Gas prices have jumped through the roof of late, prompting conversation of the U.S. being less dependent on foreign oil. Approximately 30 percent of our nation’s corn goes toward ethanol production already, according to the USDA.

But not everyone is excited. Former President Bill Clinton weighed in on the issue when he addressed the USDA’s 2011 Agricultural Outlook Forum. He said there must be a balance between using crops for food and fuel, cautioning that a rise in prices – perhaps caused by increased biofuel production – could hurt those in developing countries and fuel food riots, according to a report by the National Assoc. of State Departments of Agriculture (NASDA).

This brought a slew of responses from corn advocates. National Corn Growers Assoc. President Bart Schott stated, “Every year, America’s farmers produce more than enough corn to meet all the needs of the expanding markets of feed, fuel and food, both in the United States and across the world and the ethanol industry is not an exception.

“The U.S. ethanol industry uses only 3 percent of the increasing global grain supply and is expected to return 1.2 billion bushels of corn livestock feed in the form of dried distillers grains and corn gluten feed this year alone.

“New reports show that the rising cost of oil, not ethanol production, is a major cause of increased food prices. With the continuing unrest in the Middle East and Northern Africa, it is imperative that we continue to support a homegrown fuel industry that helps keep our country safe and creates jobs. The American farmer is very aware of the world’s rising demand for corn, and we will continue to meet those needs,” he said.

Loss of financial aid?

If corn is to continue its role in ethanol production, the industry may have to do without the benefit of tax credits. U.S. Sens. Ben Cardin (D-Md.) and Tom Coburn (R-Okla.) introduced legislation last week to eliminate the Volumetric Ethanol Excise Tax Credit (VEETC).

The “blenders’ tax credit” provides 45 cents per gallon to blenders of ethanol. The move would save taxpayers $6 billion, according to information from Cardin’s office.

“As our economy begins to grow again, we need to bring our budget under control through a combination of smart cuts and smart investments. Cutting yet another subsidy to Big Oil that is making big profits is smart policy,” he said.
“Rather than underwriting ethanol subsidies that are causing food prices to skyrocket, we should be supporting American innovation in more sustainable alternative fuels, the results of which will help create jobs, lower energy costs and strengthen our national security.”

Coburn said the ethanol tax credit is bad economic, energy and environmental policy. “The $6 billion we waste every year on corporate welfare should instead stay in taxpayers’ pockets where it can be used to spur innovation, stimulate growth and create jobs,” he added.

“I’m hopeful my colleagues on both sides of the aisle will take a stand against business-as-usual special interest giveaways and eliminate this wasteful and harmful subsidy.”

Bob Dinneen, president and CEO of the Renewable Fuels Assoc., responded in a statement: “At a time of rapidly rising gas prices which threaten a fragile American economic recovery, it makes no sense to deprive Americans of a lower cost choice at the gas pump or to stop America’s investment in an American-made, job-creating alternative to foreign oil.

“If recharging our economy is a top fiscal and economic priority for these senators, then Job One should be redirecting the $1 billion a day we spend on foreign oil back into the U.S. economy. Ethanol is part of the solution, not the problem.”

As the debate over ethanol continues, the USDA has opened the door for corn to be used solely for making fuel. The agency recently announced the deregulation of the amylase corn trait developed by Syngenta specifically for ethanol production.

Many scientists’ groups voiced their opposition. A statement released from the Union of Concerned Scientists (UCS) said, “Allowing farmers to plant engineered ethanol corn will contaminate corn intended for food, which could have serious consequences for the U.S. food industry.”

Margaret Mellon, director of UCS’s Food and Environment Program, added, “The USDA’s decision defies common sense. There is no way to protect food corn crops from contamination by ethanol corn. Even with the most stringent precautions, the wind will blow and standards will slip. In this case, there are no required precautions.”

Syngenta released information saying the company would work closely with a small number of growers and ethanol plants this year in preparation for large-scale production in 2012, and that the product will be managed using a contracted closed production system.