Iowa Ag Secretary says misinformation abounds on ethanol

Iowa’s top Ag official says Americans are being subjected to misinformation and “spin” about how ethanol effects gasoline prices. National news reports following Tuesday’s decision about California’s fuel supply claim gasoline prices will rise when ethanol is injected. Iowa Agriculture Secretary Patty Judge says the opposite will happen when corn-based ethanol becomes the additive of choice on the West Coast.Judge says the latest reports about higher gas prices associated with ethanol are “one more red herring being thrown out by the oil industry.” She says it’s hard to believe people would think using an additive that costs less would make the cost of gasoline go up.When the petroleum-based additive M-T-B-E is phased out by 2003, California gas stations will need hundreds of millions of gallons of ethanol. Analysts believe it’ll raise corn prices up to 15-cents a bushel and add a billion dollars to farmers’ bank accounts.