Biofuels the Department of Agriculture Thesis

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Biofuel from corn is, at presently, relatively inefficient. Surveys indicate that at best biofuel generates 1.3 times the energy it costs to product (Jaffe, 2007); several studies indicate it generates less than what it costs to produce (Wald, 2007).

Moreover, natural gas is the standard fuel required in ethanol production and our production already does not match our consumption (Ibid.). As a result, we do not see biofuel as a long-term solution to our energy problems. However, it can act as a valuable bridge, since biofuel is ready for market today and many of the best substitute options are only in the development stages.

On balance, we believe that biofuels represent an important bridge in our energy strategy. They are not a long-term solution, but they are the best alternative energy choice available today. As Minister of Agriculture, I recognize the benefit they will bring to our farmers in terms of higher prices for corn and other feed crops.

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We do not see sufficient negative impacts of biofuel development to actively discourage the practice. However, we also understand that securing our nation's energy future will require other solutions. Providing long-term enticement to our farmers to produce crops for biofuel production may result in overcapacity when these other alternate fuels come to market. Therefore, we do not wish to actively promote the development of biofuels either. Allowing the free market to dictate the issue will allow our farmers to enjoy short-term gains while retaining flexibility to move into other crops should demand for biofuel falter. As Minister of Agriculture, I feel that this approach will yield the strongest returns not only for our farmers but for our energy future.

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