Shaheen proposes measures to protect market from price manipulation, shift tax incentives from corn-based ethanol to wood-based ethanol
(Manchester, NH) – As food prices continue to climb, former Governor and current US Senate candidate Jeanne Shaheen today released several proposals to protect the market from food and oil price manipulation and shift tax incentives for corn-based ethanol to wood-based ethanol. Shaheen believes we should invest in the expansion of cellulosic wood-based ethanol, which won't impact the global food supply and can be generated from resources right here in New Hampshire.
"Middle class families are struggling as the cost of the food they put on their tables every night continues to climb," Shaheen said. "Not only is reckless speculation on food costs by billion-dollar hedge funds driving up the price of food, but skyrocketing gas prices mean increased transportation costs – and New Hampshire families are absorbing that extra cost at the grocery store. However, there are steps we can take to protect the market from price manipulation and increase tax incentives for the development of wood-based fuels that will help end our dependence on foreign oil, won't impact the price of food and will create jobs in New Hampshire."
Shaheen proposed the following steps to help protect commodities like oil and food from price manipulation and shift tax incentives from corn-based ethanol to wood-based ethanol:
Crack down on excessive speculation in the agricultural market by lowering the number of futures contracts that traders who are not in the food business can buy, and by limiting exemptions that allow traders who are not in the food business to speculate on the price of agricultural commodities. Tightening the restrictions on food price speculation will lessen speculators' ability to artificially raise the price of food.
Increase tax incentives for wood-based ethanol and reduce subsidies for corn-based ethanol. Shaheen supports investing money in exploring methods being developed right here in New Hampshire to use forest byproducts to create cellulosic ethanol. Cellulosic, or wood-based, ethanol won't have an impact on the global food supply and, given New Hampshire's abundant forest resources, expanded use of cellulosic ethanol will create jobs right here in New Hampshire.
Take significant steps to bring down the cost of oil, which is driving up the cost of food by increasing the cost of transportation and making it more expensive for farmers to run their equipment. Congress should take action by:
*releasing 30 million barrels of oil from the Strategic Petroleum Reserve to help increase supply
*closing the Enron loophole that allows Wall Street traders to gamble on the price of oil, artificially driving it up in an attempt to make huge profits
*amending our anti-trust laws to allow OPEC to be held accountable for price-fixing
*demanding that oil refineries, most of which are run by the big oil companies, increase their production of oil
*creating an Oil and Gas Market Fraud Task Force to investigate allegations of oil and gas market manipulation and fraud, similar to the Corporate Fraud Task Force established in 2002 in the wake of the Enron scandals.
"In the short term, we also need to provide some immediate relief from the strain this crunch is placing on food banks and programs that assist low-income families," Shaheen added. "As food prices rise, New Hampshire food pantries are seeing a substantial jump in the number of families seeking assistance and the NH Department of Health and Human Services recently announced significant increases in the distribution of food stamps to local residents. Congress must support increased funding for the Emergency Food Assistance Program so that we are able to provide for the hungry in our communities."
