Home
/
RELIGION & LIBERTY ONLINE
/
Beginning of the End of Corn Ethanol?
Beginning of the End of Corn Ethanol?
Jan 19, 2026 1:25 AM

Ethanol subsidies, once considered a sacred cow, are facing the possibility of being axed from the budget. The Senate cast a deciding vote, 73-27 in repealing the 45 cent per gallon subsidy to refiners for blending gasoline with ethanol, and the 54 cent per gallon tariff on imported ethanol.

Cutting the ethanol subsidy and repealing the tariff still face an uphill battle as it must pass the house and get the signature of President Obama, who has vowed not to fully repeal the subsidy. Supporters of ethanol are fighting harder to preserve the subsidy and tariff, and are now issuing claims that the ethanol subsidy keeps gas prices lower than what they would be if the subsidy wasn’t in place.

Iowa State University released a study arguing that ethanol has helped suppress gasoline prices. It is of no surprise that supporters of the ethanol subsidy and tariff have embraced the study by Iowa State University with open arms and are using it to add weight to their position.

Unfortunately for supporters of the ethanol subsidy, the Institute for Energy Research, released its own study debunking the arguments from Iowa State. While the Institute for Energy Research admits that removing the ethanol subsidy will result in a short-term spike in gasoline prices, they argue that in the long run consumers are better off without the ethanol subsidy–ideally the country would’ve been better off if the subsidy had never existed.

Those who claim that removing the ethanol subsidy and tariff will increase gasoline prices also fail to acknowledge principles of basic market economics. By removing the tariff, the United States is able to import cheaper ethanol from countries like Brazil, which produce the cheaper sugar-based ethanol, thus making ethanol more affordable for consumers. As a result, the market adds a product pete with gasoline, and petition, may drive the price of gasoline lower.

The concept petition driving down prices is explained by Joel Velasco, former chief representative in North America for the Brazilian Sugarcane Industry Association. Velasco argues petition between corn and sugarcane ethanol will benefit consumers. The principle petition found in his argument can be applied petition between gasoline and ethanol as well.

While it may seem like ethanol from Brazil is a perfect solution, there are unintended consequences that must be weighed. Ecology professor at the University of São Paulo in Brazil, Luiz Martinelli, warns of the many problems with Brazilian ethanol in an article published in the Cornell Daily Sun. Martinelli explains that ethanol production pollutes the environment and results cause serious problems:

Ethanol production fosters deforestation in Brazil. Sugarcane needs a well-defined drought season to concentrate sugars in the cane stalk, making the wetter Amazon region less than ideal for growth. Consequently, growers convert increasing areas of land in the transitional area between the cerrado grasslands and the Amazon forests to sugarcane. As a result, the increase may indirectly lead to deforestation as other crops, like soybean, are pushed into the Amazon.

“We don’t have much room for deforestation. If sugarcane causes 1,000 of squared kilometers of deforestation, we’ve set off any savings [of avoided carbon emissions] that we have saved,” emphasized Martinelli.

Such unintended consequences were also articulated by Ray Nothstine on the PowerBlog in 2007 as religious leaders began to express alarm about increasing ethanol production:

Religious leaders are speaking out. In March, Roman Catholic bishops in Brazil warned that a rapid increase in ethanol production based on sugar cane could lead to widespread deforestation, massive relocation of workers and munities, and harsh working conditions for cane cutters. Analysts predict that Brazil, the world’s largest exporter of ethanol, may increase ethanol production as much as 40 percent in the next four years. “We are going to turn the country into a huge cane (plantation),” said Cardinal Geraldo Majella Agnelo. In Colombia, Christian aid organizations say armed groups are driving peasants off their lands to make way for plantations of palm oil, another biofuel. Acreage dedicated to production of the palm oil tree has more than doubled in the last four years.

Nothstine later explains in “‘Big Corn’ and Unintended Consequences” how corn ethanol will increase food prices, is more costly to produce and transport, and has pollution problems.

If ethanol made from sugarcane gains traction in the United States and other countries, the same questions that have been raised by corn ethanol must also be asked when es to sugar-based ethanol. Will we have a problem with unintended consequences? Will sugar ethanol contribute to rising food prices in a manner similar to that of corn ethanol? What effects will sugar ethanol have on the environment, and what are the impacts of deforestation?

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
John Locke and a Chinese Investiture Controversy
Acton’s Director of Research Dr. Samuel Gregg has two new pieces today, in Public Discourse and The American Spectator. The first is a response to Greg Forster’s“Taking Locke Seriously” on June 27 in First Things. In that article, Forster took issue with Gregg’s June 22 Public Discourse piece, “Social Contracts, Human Flourishing, and the Economy.” Gregg argues, in a July 29 response to Forster titled “John Locke and the Inadequacies of Social Contract Theory,” that Locke’s political thought is based...
Circling the Sacred Debt Wagons
In my mentary addressing the nation’s debt crisis I included words from Admiral James B. Stockdale. The full es from an essay on public virtue from the book Thoughts of A Philosophical Fighter Pilot. In his 1988 publication, Stockdale declared: Those who study the rise and fall of civilizations learn that no ing has been surely fatal to republics as a dearth of public virtue, the unwillingness of those who govern to place the value of their society above personal...
Rev. Sirico: The Church as the Bride of Caesar
From the “What Would Jesus Cut” campaign to the Circle of Protection, Jim Wallis’s liberal activism rooted in his “religious witness” has grabbed headlines across the nation . Wallis advocates for the “protection” of the poor and vulnerable by pushing for expansive government welfare programs. However, has Wallis effectively analyzed all of the programs for efficiency before advocating for their preservation? In the National Review Online, Rev. Sirico raises many concerns about the Circle of Protection campaign underway by Wallis...
Rev. Sirico: Wealth Creation, Not Wealth Redistribution
Does the Circle of Protection actually help the poor? What may be surprising to many of those who are advocating for the protection of just about any welfare program is that these may not alleviate poverty but only redistribute wealth. Rev. Sirico explained in an interview with the National Catholic Register how the discussion should be about wealth creation, not wealth redistribution: Father Robert Sirico, president of the Acton Institute, a conservative think tank based in Grand Rapids, Mich., suggested...
What the Common Good Isn’t
It looks like Congress will vote later today or this evening to raise the debt ceiling and avert a possible default by the United States Treasury. How the debt promise will fair when measured against Acton’s Principles for Budget Reform it is too early to know, but one thing is certain: if the deal contains a single budget cut for even the most ineffective of social programs, we’ll hear screams of protest from Jim Wallis and his Circle of Protection....
Call of the Entrepreneur Continues to Air on BIZ TV
Acton Institute would like to invite you to tune into BIZ TV for showings of The Call of the Entrepreneur, the first documentary released by ActonMedia. BIZ TV will be presenting the film today (July 29) at 5:00 pm EST, tomorrow (July 30) at 8:00 am EST, and Sunday, July 31 at 7:00 pm EST. BIZ TV is a network focused on airing inspirational true stories and informative talk shows that educate and motivate America’s entrepreneurs and small business owners,...
The Privilege of Responsibility
This past weekend in Chicago a luncheon was held for the kickoff of college football’s Big 10 Conference. Michigan State University quarterback, Kirk Cousins, was featured at the conference, giving an honorary talk on his journey through four years in college football, and the important lessons he took away from his experience. Cousin’s stresses the opportunity given to him at MSU was one of privilege. Unlike most haughty star athletes, Kirk Cousins seem to understand what it truly means to...
Fertile Ground for Farm Subsidy Cuts
Here’s the piece I contributed to today’s Acton News & Commentary: Fertile Ground for Farm Subsidy Cuts By Elise Amyx With debt and budget negotiations in gridlock, and a growing consensus that federal spending at current levels is unsustainable, political support for farm subsidies is waning fast. What’s more, high crop prices and clear injustices are building bipartisan support for significantly cutting agricultural subsidies in the 2012 Farm Bill. The New Deal introduced an enormous number of agriculture subsidy programs...
The Patriot Act and the Threat to the Rule of Law
Three of the Acton Institute’s core values are dignity of the person, the rule of law and the subsidiary role of government.The Patriot Act, passed in 2001, violates these fundamental principles. In the United States and elsewhere, freedom and protection against unreasonable government intrusion have been considered essential to a democratic society.Near the start of the American Revolution, the Founding Fathers and the American colonists had grown tired of English interference. A particularly inflammatory usage of law was “the British...
Circle of Protection Ads: A Telling Distortion of Scripture
The Circle of Protectionradio advertisementsbeing broadcast in three states right now make their arguments, such as they are, from a quotation of the Bible and a federal poverty program that might be cut in a debt promise. But the scriptural quotation is a serious misuse of the Book of Proverbs, and the claims about heating assistance programs are at best overblown: the ads are really no better than their goofy contemporary piano track. The Circle of Protection, of which the...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved