Secy. Vilsack: E15 Won’t Inflate Food Prices, 'There’s Plenty of Corn Here'

Vilsack says concerns over inflated food costs due to increased E15 consumption can be put to rest — any grocery price hike is not coming from E15 because “there’s plenty of corn here.”
Vilsack says concerns over inflated food costs due to increased E15 consumption can be put to rest — any grocery price hike is not coming from E15 because “there’s plenty of corn here.”
(Farm Journal)

Corn chatter has stretched across The Hill in recent weeks, as USDA Secretary Tom Vilsack returned from Mexico following talks of trade, and  President Biden suspended the summer ban on year-round E15.

Vilsack joined AgriTalk Host Chip Flory to share why the year-round E15 announcement was an “important step” in bringing down rising costs at the pump.

“Had the President not made the decision to keep E15 available through June 1, we would have seen 2,300 stations across the country put a bag on the pump,” he says. “That access during summer months is a very good thing.”

On Tuesday, President Biden also announced his administration will be directing $100 million to expanding distribution systems across the nation. Vilsack says E15, E85 and E20 blends will be factored into these upgrades as well. 

Additionally, $5.6 million be allocated to blender pump infrastructure in California, Delaware, Illinois, Maryland, New Jersey, New York and South Dakota, according to Vilsack. USDA says this will boost high-blend renewable fuel availability by roughly 59.5 million gallons per year.

Ethanol funding doesn’t stop short of the pump. Vilsack says to “expect and anticipate that $700 million in payments we set aside for the biofuels industry will be made at the end of April.”

Ethanol Takes Flight

Pete Meyer shared a similar ethanol conversation with Flory on Wednesday. Meyer believes the Renewable Fuel Association should shift their campaign away from E15 and move to aviation fuels.

“If you take every gallon of ethanol that was used for cars in 2019, you’ll be able to produce 8.8 billion gallons of jet fuel, controlling a third of the entire jet fuel in this country,” he says. “This is the future of ethanol.”

Vilsack echoed Meyer’s comments, noting the “huge” opportunity in an industry that demands 35-billion-gallons of fuel. 

E15 and Food Costs

Vilsack says concerns over inflated food costs due to increased E15 consumption can be put to rest — any grocery price hike is not coming from E15 because “there’s plenty of corn here.” 

The war in Ukraine will be the primary factor tipping food price scales, according to Vilsack.

“We don’t really know what the impact of that war is going to be on Ukraine’s crop this year, or what it’s going to look like in terms of exportability,” he says. “But it’s pretty clear it’s not going to be what it usually is.”

Ukrainian farmer Nick Gordiichuk joined AgDay Host Clinton Griffiths in early April to attest to the crop situation in Ukraine, as he and many other farmers have chosen to brave the war in order to keep a stream of food flowing to Ukrainians.

Gordiichuk estimates only 25% of Ukraine’s total acreage will be planted this year.

More on ethanol and food prices:

> E15 Summer Ban Suspended, USDA Commits $700M To Biofuels Producers

> Straight from Ukraine: Farmers Share Planting Updates, Concerns and More

> Food at Home Prices Shot Up 10% — and American Shoppers are Willing to Fork Over the Extra Cash

 

 

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