Bakers Oppose EPA E15 Decision, EPA Must Review Science & Economic Impact

WASHINGTON, D.C. – The American Bakers Association (ABA) expressed concern today over the Environmental Protection Agency’s decision allowing the sale of gasoline containing 15 percent ethanol (E15) for cars manufactured in the 2007 model year or later. “EPA’s decision to increase the ethanol blend to E15 will further increase volatility in the grain markets. Other grains, including wheat, may increasingly be in shorter supply; potentially this may impact food prices in the future as the nation continues to lose wheat acreage,” said Robb MacKie, ABA president and CEO. “ABA strongly opposes this ill-advised decision and calls on EPA to consult with relevant government agencies to carefully study how this would impact market volatility, to review the science behind the decision and analyze the economic impact on the already weakened economy.”

The U.S. has a finite number of acres to use for farming, and fuel crops have taken over many acres that were previously used to grow food crops. Where will the land come from to grow more food crops as well as to meet new ethanol mandates? U.S. cropland is already stretched to its limit. Increasing the blend has the potential to further impact commodity stocks and ultimately food prices. The grain markets are currently experiencing near record volatility and prices have edged closer to the record levels of 2008.

“While many factors play into commodity price volatility, taking food crop acreage and turning it into fuel crop acreage may lead to tighter food supplies, higher grocery store prices for consumers, and a dependence for food commodities from foreign countries – a position of concern with regard to food security,” said Rasma Zvaners, ABA policy director. “ABA supports research to develop efficient alternative fuels. However, these policies must be balanced with the needs of traditional agriculture to ensure a reliable food supply for our nation.”

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About the American Bakers Association:

The American Bakers Association (ABA) is the Washington D.C.-based voice of the wholesale baking industry. Since 1897, ABA has represented the interests of bakers before the U.S. Congress, federal agencies, and international regulatory authorities. ABA advocates on behalf of more than 700 baking facilities and baking company suppliers. ABA members produce bread, rolls, crackers, bagels, sweet goods, tortillas and many other wholesome, nutritious, baked products for America’s families. The baking industry generates more than $70 billion in economic activity annually and employs close to half a million highly skilled people.

Source: American Bakers Association