WASHINGTON The National Restaurant Association fired off a letter yesterday to one of ethanol’s leading proponents in Congress, thanking Sen. Charles Grassley for his past support but declaring the industry could not abide with policies that worsen food costs.
“You have been and remain a good friend and ally,” NRA chief executive and president Dawn Sweeney wrote the Iowa Republican, “but with great respect, we do have a difference of opinion.”
xplaining that “skyrocketing food prices” are “now regarded by many of our members as the number one threat to our business,” Sweeney contested recent assertions by the senator that the group had acted recklessly in questioning a step-up in ethanol production.
In a letter addressed to Sweeney on June 5, Grassley expressed “disappointment and bewilderment” with the NRA’s participation in a “misleading and disingenuous assault on ethanol.” He noted that the group had joined a press event where the Grocery Manufacturers Association had linked higher food prices to ethanol and “our biofuels policies.” Grassley called it a “smear campaign.” A copy of the letter was provided by the NRA.
Iowa is one of the nation’s leading producers of corn, from which ethanol is made in the United States. Corn is also a major source of animal feed and sweeteners. With more of the crop being diverted into ethanol production, the prices of foods ranging from proteins to alcoholic beverages have been on the rise. The increased demand has also prompted farmers to plant more of their acreage in corn instead of crops like soy beans and wheat, raising the costs of those agricultural staples.
In his letter to Sweeney, Grassley asserted that ethanol production is actually holding down food prices by tempering the costs of crude oil and energy, “the biggest culprit behind the increase.”
“I am disappointed by your decision to participate in this misleading campaign that is undermining and denigrating the patriotic achievements of American farmers and small businesses,” he wrote. “I therefore strongly encourage you to no longer participate in this anti-ethanol coalition.”
“We agree and fully acknowledge that there are several factors contributing to the dramatic rise in food costs,” Sweeney responded. In addition, she said, “the National Restaurant Association supports the development of efficient alternative fuels, including the promising technology of cellulosic ethanol,” a form made from wood, grasses and inedible plant matter.
But she reiterated the association’s belief that the rapid increase in production of ethanol from corn or other foods is detrimental to the industry’s interest. It is with “very much regret that we have a disagreement on this issue,” she said.
“We look forward to working with you to find a solution that is in the best interests of all Americans,” she concluded.