USDA says Schafer is not favoring ethanol companies

AgWeek
Jerry Hagstrom, Grand Forks Agweek
Published: 10/27/2008

WASHINGTON — Agriculture Secretary Ed Schafer’s statement on Oct. 17 that the U.S. Department of Agriculture could provide ethanol companies that got into trouble by speculating on corn with up to $25 million per company in refinancing has caused a firestorm of criticism among ethanol critics who say he is favoring one segment of agriculture and might waste taxpayer money.

A USDA spokesman said Oct. 22 that Schafer was referring only to the potential use of a long-existing USDA business and industry development loan program that is available to many types of companies, but skeptics including meat producers remained unconvinced.

According to a report on Agweb.com, Schafer said at the World Food Prize symposium in Des Moines, Iowa, “There’s going to have to be some credit applied to companies to buy some lower-priced corn to blend with their higher-priced corn. This is important public policy for the country because corn-based ethanol is a stepping stone to energy independence through cellulosic ethanol. We’re going to continue to support it as much as we can. We have the responsibility to make sure we cement in the infrastructure of rural America and ethanol production has increased the economic opportunities, the jobs and the building of rural America.”

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