Support for Corn Ethanol Declining
WASHINGTON, D.C. --- The rising cost of food is prompting some legislators to reconsider their support for corn ethanol.
WASHINGTON, D.C. --- The rising cost of food is prompting some legislators to reconsider their support for corn ethanol.
Two dozen Republican senators last week, including John McCain, asked the Environmental Protection Agency to ease requirements, mandated by 2007 legislation, to blend more ethanol and other renewable fuels into the U.S. gasoline supply, the Wall Street Journal reported.
"With the price of everyday meat, chicken, bread and eggs rapidly increasing, we are asking the EPA to use the flexibility that Congress gave them, because so many families cannot afford the increasing prices at the grocery store," Sen. Kay Bailey (R-Texas) told the Wall Street Journal.
In addition, higher food prices are hindering efforts to fight global poverty.
The Senate is now debating a major farming bill that would help shift the U.S. away from corn-based ethanol by reducing the 51 cents-a-gallon credit to 45 cents. Another provision in the bill would create a new $1.01-a-gallon credit for cellulosic ethanol, which is made from wood chips, switch grass and other nonfood stocks. Cellulosic ethanol is still in developmental stages and isn't yet available commercially.
However, ethanol subsidies still draw strong support from many legislators in farm states and from the White House. At a Congressional hearing last Thursday, U.S. Department of Agriculture chief economist Joseph Glauber said that corn ethanol's impact on food prices will likely subside over time. He did, however, acknowledge that retail food prices increased by 4 percent in 2007, the fastest since 1990, the Wall Street Journal reported.
Glauber, who addressed the Joint Economic Committee, said food prices were expected to grow another 4 to 4.5 percent in 2008, but that was also due to increases in wheat and rice prices that had nothing to do with ethanol subsidies. He pointed to greater high-quality food demand from countries like China and India.
On Friday, President Bush also reiterated his support for corn ethanol. "I'd much rather be paying our farmers when we go to the gas pump than paying some nation that may not like us," he said during a speech.
More Fuel

October Fuel Trends Show Diverging Gasoline and Diesel Prices
Get the latest fuel trends from October.
Read More →
Fuel Prices Surge in September | September Fuel Update
September brought major fuel price swings, including diesel crossing $6 a gallon. Here’s how gas and diesel prices changed throughout the month, and where they stood heading into October.
Read More →Turning Fleet Payment Data into Executive Insights
Ramel Lindsay of U.S. Bank Voyager discusses how fleets can transform payment and transaction data into actionable intelligence to reduce costs, improve oversight, and support executive decision-making.
Read More →
Why the IRS Raised Its Mileage Rate in the Middle of 2026
Fuel-price volatility drove the rare increase to 76 cents per mile, the fifth midyear adjustment since 2000.
Read More →
July Fuel Update: Prices Keep Rising in Light of More Conflict
Gas prices continue to rise as more and more conflicts do, too.
Read More →
Bob Adamsky on Fuel Volatility: "Don't Panic, Have a Plan."
When it comes to up and down fuel prices, Adamsky has a message for fleets: “Don’t panic.”
Read More →How Fleets Can Gain Control of Non-Fuel Spend
Fuel often gets the spotlight, but non-fuel expenses can have a major impact on fleet costs. Ramel Lindsay of U.S. Bank Voyager discusses how fleets can gain better visibility and control over these often-overlooked expenditures.
Read More →
Fuel is Just the Start: How Middle East Tensions are Driving Up Fleet Maintenance Costs
The Middle East conflict is doing more than pushing up fuel prices. It’s also raising the cost of key maintenance products your fleet depends on, from motor oil to tires to windshield wipers. Here’s what you need to know about this budget-busting situation.
Read More →
June Fuel Update: Prices Fall Below $4
Drivers are finally getting some relief at the pump. The national average gas price has dropped below $4 a gallon for the first time in months, with prices falling in 47 states as oil markets react to developments in U.S.-Iran negotiations.
Read More →
Study: How 2026's Gas Price Hikes Affect Different Vehicle Types
New data from iSeeCars reveals how rising fuel costs have affected different vehicle segments as gasoline prices climbed nearly 46% over the past four months.
Read More →