Ethanol makers form new lobby as food industry and environmental groups seek to repeal subsidy

Food and environmental groups are ramping up their efforts to repeal federal ethanol subsidies, and the ethanol industry is countering with a new lobbying group to fight accusations that the subsidies are to blame for higher food prices.

"A coalition of groups including the National Turkey Federation, the American Meat Institute, the National Chicken Council and the National Cattlemen's Beef Association plans to gather in Washington Tuesday to ask Congress and the next administration to repeal ethanol subsidies," reports Ann Bagel Storck of MeatingPlace. The coalition "also includes environmental organizations, government watchdog groups and hunger advocates." (Read more)

Ethanol distillers have formed Growth Energy to counter accusations from groups. Bruce Rastetter, chief executive of Hawkeye Energy in Ames, Iowa, told Philip Brasher of The Des Moines Register that the coalition is a "new voice in the industry that provides some leadership in particular on the food-vs.-fuel debate."

The Grocery Manufacturers Association is a leading critic of ethanol. The consulting firm representing it, Glover Park Group, says the new ethanol lobby is a "splinter group" that "seeks to perpetuate the myth that rising food prices are a result of a food-company conspiracy." Research indicates that ethanol is a relatively minor factor in food-price hikes, with energy costs being the main culprit. (Read more)

UPDATE, Nov. 18: For a report on today's attack and counterattack by the two lobbies, from Julie Harker of Brownfield Network, click here.