1. MANAGING Tough Times Ethanol Issues Food versus Fuel – Domestic Food versus Fuel – International Energy Balance Community Impacts

2. MANAGING Tough Times Food vs. Fuel Domestic

3. MANAGING Tough Times

7. Food Losses at the Retail, Foodservice and Consumer Levels, 1995 Edible Food Supply *Percent Commodity(million pounds)Loss Grain Products45,60632% Fruit48,33823 Vegetables63,07725 Dairy Products76,27632 Meat, Poultry & Fish51,46616 Eggs7,91831 Caloric Sweeteners38,82731 Other24,37430 Total355,88327% * Excludes non-edible food parts. Source: Economics Research Service, USDA

8. MANAGING Tough Times 1) Sudan 2) Somalia 3) Chad 4) Central African Republic 5) Democratic Republic of Congo 6) Rwanda 7) Kenya 8) Uganda 9) Ethiopia U.S. food supply is 3,800 calories per person per day (USDA, 1994). If the avg. person needs 2,000 calories per day, the excess calories could provide all of the caloric needs of:

9. MANAGING Tough Times Food vs. Fuel International

10. MANAGING Tough Times Impact of Commodity Prices on Consumer Food Budgets High-incomeLow-Income, Food- CountriesDeficit Countries Base Scenario Income$40,000$800 Total food expenditure$4,000$400 Food cost as % of income10.0%50% Staples as % of food spending20%70% Expenditures on staples$800$280 New Scenario: 50% price increase in staples, Expenditures on staples$1,200$420 Total food expenditure$4,400$540 Food cost as % of income11%67.5% These are illustrative food budgets that characterize the situations for consumers in high- and low- income countries. Source: Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Commodity Prices/WFS-0801, Economic Research Service, USDA.

11. MANAGING Tough Times Policy Changes to Discourage Exports (keep within country) 1.Eliminate Export Subsidies – China 2.Implement Export Taxes – China, Argentina, Russian, Kazakhstan, Malaysia 3.Export Restriction (quantitative) – Argentina, Ukraine, India, Vietnam 4.Export Bans – Ukraine, Serbia, India, Egypt, Cambodia, Vietnam, Indonesia, Kazakhstan 5.Reduced Import Tariffs – India, Indonesia, Serbia, Thailand, EU, Korean, Mongolia 6.Subsidize Consumers – Morocco, Venezuela Source: Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Commodity Prices/WFS-0801, Economic Research Service, USDA.

12. MANAGING Tough Times Energy Balance

13. MANAGING Tough Times Btu Used to Make One Btu at the Fuel Pump * TotalFossil BtuFuel Btu Corn Ethanol **1.75.74 Cellulosic Ethanol2.25.10 Gasoline1.231.23 * Argonne National Laboratory ** Dry Mill

14. MANAGING Tough Times British Thermal Units Generated from One Btu of Fossil Fuels * Btu Corn Ethanol1.36 Gasoline.81 Electricity.45 Coal.98 Cellulosic Ethanol10.31 * Argonne National Laboratory

15. MANAGING Tough Times Community Impact

16. MANAGING Tough Times

17. Job Impact – 100 MGY Ethanol Plant Ethanol Plant – One job per 5,176 ac. Corn Total – One job per 1,400 acres of Corn