Widespread Concern about Rising Food Costs Dampens Americans' Support of Policies Promoting the Production of Corn Ethanol

New York, NY - While a majority of Americans (55%) initially say that they support existing policies aimed at promoting the use of corn to produce ethanol, when informed of USDA data linking ethanol to food price increases, half (49%) become less likely to support these policies, according to an Ipsos poll conducted for members of the Food Before Fuel campaign. The policies were defined as including an annual tax subsidy of more than $4 billion to fuel blenders for adding ethanol into the fuel supply; a tariff on imported ethanol; and a mandate requiring set levels of ethanol be blended into fuel each year.

• Nine in ten Americans (89%) are concerned about the rising cost of food, including 57 percent who say that they are very concerned.

Additionally, when asked if they would support keeping in place existing Congressional policies that promote corn ethanol or if they would support changing these polices, a majority (56%) would favor a change; more than half would prefer to reduce or eliminate subsidies and mandates for the use of corn ethanol.

These are some of the findings of an Ipsos poll conducted October 30 - November 3, 2008. For the survey, a nationally representative sample of 1,000 adults aged 18 and older residing in the United States were interviewed by telephone via Ipsos' U.S. Telephone Express omnibus. With a sample of this size, the results are considered accurate within 177 3.0 percentage points, 19 times out of 20, of what they would have been had the entire population of adults in the U.S. been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure the sample's regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau.

Initial support for the production of corn ethanol is substantial, with more than half of Americans (55%) in support of these policies aimed at promoting the use of corn to produce ethanol, including one in five (21%) who are in strong support. Adults under 35 (66% support), Midwesterners (60%) and those without a college degree (59%) are most likely to express support for policies that promote the production of corn ethanol.

While a majority favors these policies, more than a third (35%) is in opposition of them, particularly college graduates (48%), those aged 55+ (43%), and married adults (40%),

One in ten (10%) are not sure where they stand on this issue. Those with a household income of less than $25,000 (16%), African Americans (20%), and retirees (14%) are among those most likely to be unsure. Regional differences also emerge: Midwesterners are most likely to have an opinion, as just 3 percent are unsure, while more than one in 10 Americans in the Northeast, South and West are unsure.

Widespread Concern about Rising Food Prices

Nine in ten Americans (89%) are concerned about the rising price of food at the grocery store, including more than half (57%) who say that they are very concerned.

• Women are more likely than men to express high levels of concern (64% vs. 49% very concerned).
• Those with a household income of less than $50,000 are more likely than the more affluent to be very concerned (69% vs. 43%).
• Those who are not registered to vote are more likely than registered voters to be very worried about the increasing price of groceries (54% vs. 68%).

Given these high levels of concern about rising food prices, it is not surprising that support for continuing ethanol subsidies drops when respondents learn that these policies have contributed to 10 percent of the rise in the price of food. Half (49%) say that they would be less likely to support policies aimed at promoting the use of corn ethanol and other biofuels.

• Americans with at least some college education (56%), Northeasterners (55%), non-Hispanic whites (52%), and men (52%) are among those most likely to decrease their support for ethanol policies upon learning of their connection to rising food costs.

Nevertheless, four in 10 (41%) say that they would be more likely to support ethanol policies after hearing this.

• Midwesterners (48%) are among those most likely to say they would be more supportive of policies aimed at promoting the use of corn ethanol and other biofuels.

Corn Ethanol Policies and the 111th Congress

When asked whether they would support the next Congress in either changing or continuing these policies of subsidies and mandates for the use of corn ethanol, a majority (56%) would opt to support changing the current policies. In fact, nearly three in 10 (28%) would strongly support efforts to change these policies by reducing or eliminating subsidies and mandates for the use of corn ethanol.

• Those aged 55+ (36%), those with a household income of less than $25,000 (38%) and Westerners (36%) are particularly likely to strongly support reducing or eliminating subsidies and mandates for the use of corn ethanol.

In contrast, a third (32%) would support continuing Congressional policies that promote the production of corn ethanol, though only one in 10 (12%) strongly. Midwesterners (38%) and Southerners (36%), and those with a household income of at least $50,000 (37%) are particularly likely to support continuing Congressional policies.

Interestingly, when presented with arguments for and against continuing the current policies promoting the production of corn ethanol, Americans are more split:

"People against keeping these ethanol policies say that our policy of taxpayer subsidies for the corn ethanol industry is wrong for consumers and our economy. Subsidizing ethanol drives up the price of corn, meaning higher food costs. It also leads to job losses for industries that rely on corn while barely reducing oil consumption. Congress should stop subsidizing the corn ethanol industry."

or

"People for keeping these ethanol policies say that higher fuel costs are the reason the price of food is going up. They suggest that the corn ethanol industry is revitalizing rural communities. And they say corn ethanol is a stepping stone to the next generation of biofuels and that is why Congress should keep taxpayer subsidies for corn ethanol in place."

While 45 percent agree with the arguments to keep the policies, 44 percent agree with the argument for keeping these policies. However, those who side with changing the policies show great intensity of support: a quarter (24%) strongly agree with changing the policies while just 15 percent strongly agree with keeping them.

Men (49%), Westerners (52%), and African Americans (52%) are more likely than others to support arguments for changing the policies while those with a household income of at least $50,000 (49%), Midwesterners (51%), and Southerners (48%) are more likely to favor keeping these policies in place.

• There is little difference between registered voters and those who are not registered.

Additionally, one in five (11%) are unsure, particularly women (15%), retirees (20%), those aged 55+ (15%) and Northeasterners (15%). While Midwesterners previously showed low levels of uncertainty (just 3%), this figure jumps to 11 percent when presented with opposing arguments.

For more information on this news release, please contact: Nicolas Boyon Senior Vice President Ipsos Public Affairs (646) 364-7583 [email protected]

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