Ethanol's role in economy seen locally as a balancing act

The Pantagraph (Bloomington, IL)
By Michelle Koettersmkoetters@pantagraph.com

HENNEPIN -- Consumer Scott Kroll assumes production of ethanol means higher prices for eggs, milk and bread. “Gas prices will go down, but food prices will go up,” said Kroll, of Oglesby. “One way or another, we’re going to get slammed.”

Those perceptions are something Mark Marquis wants to combat.

Marquis, president of Marquis Energy, an ethanol plant in the Central Illinois community of Hennepin, understands why consumers blame ethanol for higher grocery bills. He doesn’t deny ethanol has raised corn’s price, but said it’s the fourth reason down the list. Marquis even argues consumers would pay more for groceries without ethanol.

The biggest factor in rising corn prices is the devaluation of the American dollar that actually makes corn prices attractive to foreign buyers, Marquis said. Investors who have switched to putting money into commodities and more demand from emerging markets like Asia also have contributed more to higher corn prices, Marquis said.

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