Why produce ethanol? For starters, it's good news for area farmers because corn prices are rising as demand increases Story
BYLINE: KATHIE DICKERSON
Staff Writer
COSHOCTON -- Lower prices at the fuel pump would be a relief for many, and drivers of more than five million vehicles already equipped with engines that run on ethanol are experiencing that -- if they can find E85.
E85 is fuel that's 85 percent ethanol and 15 percent unleaded gasoline.
January prices for E85 averaged $2.48 a gallon, according to E85.com, however AAA cautions that because of the lower energy content in E85, the cost is likely to be about 25 percent more, according to AAA's fuel gauge report.
Ethanol production is good news for area farmers, as prices are on the rise as demand increases.
It's anticipated about 20 million bushels of corn will be needed annually at the Coshocton plant, which began grinding corn on Feb. 5. About 3 million bushels of corn for grain were produced in Coshocton County in 2006, according to the Ohio Department of Agriculture.
Ohio's grain prices continue to improve, with corn averaging 70 cents more a bushel in December than what it was a year ago, at $3.62 a bushel, according to the U.S. Department of Agriculture National Agriculture Statistics Service Ohio field office in Reynoldsburg.
However, there's been some debate as to whether ethanol consumption of corn has raised the price of food.
A study by Informa Economics identified food costs that exclude grains and raw materials are the driver of the consumer price index for food.
Cost increases are attributed largely to rising energy and transportation expenses, and about 4 percent of the change in the cost of food can be attributed to fluctuations in the price of corn, according to the report.
Meanwhile, the Ohio Corn Growers Association advocates that Ohio farmers will respond to the food and fuel markets needs by planting 4 million acres of corn, a 22 percent increase over last year.
There's also been considerable debate that it takes more energy to produce ethanol than what is gained on its return, however a U.S. Department of Agriculture report concluded that for every unit of energy put into ethanol, 1.67 units come back.
Ethanol has long been touted as a more environmentally friendly fuel. It adds oxygen to gasoline, thus helping it burn more completely and reduce tailpipe emissions, according to the National Corn Growers Association's Web site, which refers to studies performed by the American Lung Association of Greater Chicago and the California Environmental Policy Committee.
A study published in "Science" magazine this month argues that ethanol could contribute to global warming as land use changes and more forested land is converted to farming to satisfy demand.
AltraBiofuels is acquiring a research and development facility in California, and the company is involved in the study of biodiesels and celluosic technologies. Celluosic technology uses plant material such as grasses, straw and sawdust to produce ethanol. Coshocton Ethanol was designed to adapt to the process.
According to the National Corn Grower's Association the benefits of ethanol production go beyond the corn market. Rural communities around the country have been rejuvenated by the creation of high-paying jobs. Locally, employees at Coshocton Ethanol, 41 of them, are making around $15 an hour, according to documentation from the Ohio Department of Development for a Job Creation Tax Credit.
The city of Coshocton, Franklin Township and the Coshocton Port Authority benefit from a Joint Economic Development District, which allows the entities to collect and share an income tax from employees in the district, which includes the ethanol location.
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