Carl Mortished, International Business Editor
2 for 1 tickets to Singin' In The Rain, this coming Monday. Book now
The price of meat is set to rise in America as the nation’s helter-skelter dash to convert corn into road fuel begins to take its toll on the supply of food.
The US Department of Agriculture has said that meat supply will fall this year because of the high cost of feed. Output of beef, pork and chicken is expected to decline by one billion pounds as farmers react to the soaring cost of feeding their livestock.
Typically, meat production in the United States rises by about 2 per cent a year, but the pressure from American ethanol producers manufacturing road fuel from corn has sent the price of maize soaring to $4 a bushel.
The USDA is predicting that the 2006 corn crop will sell for an average of $3.10 a bushel at the farm gate, the highest for a decade. Faced with extortionate feed costs, cattle and poultry farmers are rearing fewer animals and slaughtering them early. That means a sudden reversal in the annual meat production gain, representing a fall of 1.7lb per person.
“There is a new demand component,” Shayle Shagam, a livestock analyst at USDA, said. “Livestock producers have to bid against the ethanol industry to get supplies of corn.”
The biofuel revolution’s unpleasant negative consequence was first felt south of Rio Grande, when the escalating price of corn affected a food staple. Mexico’s tortilla inflation crisis is spreading north to the heartland of rib-eye steak and chicken wings. The USDA predicts that food prices will rise by up to 3.5 per cent this year as farmers rein in output in response to feedstock costs.
In Washington, the International Monetary Fund added its warning about the consequences of a mass conversion of food crops into fuel. Mounting political panic over carbon emissions has encouraged politicians in European and America to raise targets for the biofuel content in a litre of petrol.
Food prices rose by 10 per cent worldwide in 2006, said the IMF in its World Economic Report, owing to a surge in corn, wheat and soybean prices. The pressure on prices will increase, says the IMF. The EU’s target of a minimum biofuel content of 10 per cent will require 18 per cent of agricultural land to be set aside for road fuel production.
Corn is a vital component of the human food chain, used as cornmeal for baking bread and tortillas, as cooking oil and corn syrup in processed foods and as animal feedstock. Vast US government subsidies for the production of ethanol, used as a petrol additive in America, has encouraged the expansion of ethanol distilleries.
The question is simple, what is driving up the food and feed prices? Yes it is the increase demand of corn, but why the increase?Ethanol has broad political support, but it is being mismanaged by countries like the US, EU, Canada and many others. They are encouraging the demand for corn by subsidizing corn producers and ethanol distilleries, while penalizing imports. Yet, it is plainly evident that the sugar cane, cellulosic ethanol and Jathropa (fast growth, drought resistant and restore degradedland) are more efficient to convert to biofuels. This problem is exacerbated by the insistence of these governments to use tariff and non-tariff barriers to restrict the import of these more productive sources of biofuels. Opening up their markets to these energy crops would reduce the demand for corn, lowering the world price, helping drop meat and dairy prices, and even help developing countries gain market access, thereby helping them develop through trade rather than being dependent on aid
Colin, Toronto, Canada
Nobody is saying anything about the by product which is corn distillers grain, This is a good cattle feed and cost is about the same as corn. Feed lots are being bulit next to the ethonal plants. Train loads of the feed go from the midwest to the west coast every week for cattle feed.
Mike, minneapolis, mn
Well I've seen every kind of comment on this board imaginable. Fat, Rich Americans, promoting the stereotype even father - "I love my Big Macs and my 10 MPG Expedition so you all can go to hell" crazy greenies that talk us into trying something green and then beat down and deride it when we try to make it more practical, all the while pushing their conspiracy theories and speaking of these magic solutions that are 1500% more efficent if only the evil big corporations werent involved. Then there's all the Europeans on here talking like bloody cavemen "Americans fat Americans evil" All of you are talking like you have a PHD in Agricultural science too. The only people on here that talk like they have a lick sense on the topic are the farmers themselves. It's a shame they only represent 1% of the population these days, maybe thats whats really wrong with the world. If the rest of you were a bit more self sufficent maybe you'd appreciate what it takes to put food on the table.
Curt, Spencer, IN
Back in those dark ages, the consensus was that the Earth was the centre of the universe. We think that consensus is silly now.
Today, we believe that man is the centre of climate change. (The poor sun always loses out in these debates!)
The more things change, the more they stay the same.
My solution has been to built a fire pit in the back yard so I can burn more wood and increase my carbon footprint. And I've taken to driving hundreds of kilometres on the weekends in my SUV.
Someone has to save the tomatoes. They desperately need that CO2!
bob, Black Diamond, Canada
Bio fuels can (potentially) only help reduce carbon emissions if they are derived from additionally grown crop, as it is the growing phase during which carbon is absorbed. This carbon is will be released again when the fuel is burnt (just like for fossil fuels) so all this re-diversion of crops to fuel production is a total waste of time. So
1. Politicians , please stop messing things up just to try and gain popularity.
2. Carbon reduction is yesterday's theory, which is increasingly believed to be wrong in terms of understanding climate change.
3. Yanks, if you can't help being so gung-ho in your comments then maybe you should eat a little less red meat!
Imran Khan, London, UK
re the carbon in ethanol - it is on a short cycle, taken out of the air by the corn plant and returned to it after burning.
But the carbon in coal and oil is a fossil, taken out of the air during the Carboniferous era millions of years ago. To oversimplify it a bit, taking the carbon dioxide out of the air then started the cooling down of the planet which limited the vast hot, humid jungle regions and enabled the temperate zones.
Those temperate zones are where most of us reading and contributing to this blog live. If you want to live in a jungle, keep burning fossil fuels. If you don't, sell your gas guzzler, sell the airconditioning, insulate your home, fit solar panels and start walking occasionally. Please.
jennie mac, inverness, scotland
Barrhead - Karls comment is in quotes - he's being sarcastic. My take is, he's referring to the backlash when the Oil Companies revealed their profits last year - immediately, everyone wanted to take the oil company profits (thru taxes) just because they deemed the profits obscenely high. Swillary Clinton ACTUALLY SAID she was going to take all those billions in profit and spend it on alternative energy research. Socialists just LOVE deciding how other people's money should be spent, don't you think? So I guess Karl is saying, why not farmers too? Simple fact is, whether socialists like it or not, ethanol is subject to Market forces just like any other good or service. Whoever takes a risk deserves to keep their profit- whether it's a farm or oil company. Sure, socialists will try to "force" people to buy ethanol, but ultimately ethanol's success will be measured capitalistically - again, whether they like it or not. And I truly hope they don't.
Scott, Youngstown, OH
Well if we continue to pollute our environment we might not have one to grow corn anyway
anthony, ridgewood, n.y
Who cares about meat? The price of moonshine has gone up 50% in last year. Politicians of both parties have increased the cost of getting away from them ...
Josh Schroeder, Detroit, Michigan
The New Age Of Insanity. With Solar Warming now melting ice caps on the planet Mars and temperature increases on Neptune and Pluto, (increased Sun output) Al Gores zombie drones will rejoice as we experience Global Famine soon. Think of all the heat escaping from all of the motor vehicles running on earth with enormous amounts of heat escaping and guess what the Earth releases it and our planet does just fine. The warmer Earth gets, the more moisture in the atmosphere, thus more rain BUT we now have a Water Shortage. This is only the start of nutcase global elite control as we become new age slaves.
Rob, Lansing, Mich USA
Ethanol takes approximately twice as much fuel to produce as it yields. This is assinine. Logic and rationality fly out the window when the Greens are allowed to translate their hysteria and enthusiasms into public policy. France and other countries make great use of nuclear energy. Why don't we? The paranoia of the Greens needs to be ignored or the "law of unintended consequences" will cause havoc.
Dave, Ohio
David Hyman, Paulding, Ohio
The ethanol and biodiesel industries are in their infancy. As with most start-up industries, they are not as cost effective as they will be. Both industries are making great advances in production efficiency and cost reduction and will in time be a common, affordable source of fuel. I am an Iowa farmer and keep tabs on both industries. There is a Iowa ethanol plant that will begin experimenting with making ethanol from corn stocks, switch grass, and other "waste" materials and the biodiesel industry here in Iowa is experimenting with processing the fats from the slaughter industry. In a nutshell, they are both working to produce fuel from waste products. Will it be efficient immediately, probably not, but they have to start some place. We are stuck with these type solutions as long as the liberal greens are running the energy show. Rather that spend energy chastising agriculture, thank God that somewhere, there is a viable solution being advanced.. Beats speaking Arabic
Dick Hugg, Westside, Iowa
I say it must be a conspiracy. I am an American, and I want free energy that doesn't pollute, low cost food and a big house with lots of fancy gadgets in it. Everything that happens is due to someone's greed and avarice, be they farmers, big oil, or the auto manufacturers. There are huge profits to be made in these alternative energy supplies like all the brush in Texas but apparently these greedy folks are too stupid to make the stuff that would make our lives better. Hey America...stop whining. We've got plenty of oil and gas right here at home, and we can make more from coal and oil shale. We have twice as much shale oil as the rest of the world has oil, yet there is infatuation with making our fuel through chemical and biological conversions which have yet to prove themselves. Reading these postings makes me think the biggest threat to the future of our nation is the underperformance of our public school system. We don't allow energy production but gripe when we have none.
Dan, washington,
Vegetarians have been saying for years that the price of meat would eventually rise as demand for foodstuffs increases, and it looks like they're right. It's much more environmentally friendly to eat lower on the food chain, so the use of corn as biofuel has a hidden environmental advantage; not only does it burn cleaner than fossil fuels, it also forces people to consume closer to the bottom of the food chain. Sounds like a win-win situation to me.
Joe Gray, Philadelphia, PA
All this because Al Gore lost the election and became unemployed - think about it.........He needs to get a real life and a real job and quit making up things to justify his existence and his use of our resources and oxygen.
Sherry, Destin, FL
Hmmm. Before all of the meat producers ramped up production I believe cattle were grazing creatures. If corn and feed are too expensive let the cattle, pigs and whatnot forage....LIKE THEY DID NATURALLY!
God only knows what all the crop foods do to the animals digestive tracts? Can you say bovine flatulence?
The commodity speculators and traders love nothing more than hype which plays into their driving prices up. I say to hell with the cows and more power to TOFU burgers!
Scott, Boulder, CO, USA
As a cattle producer myself, I am glad to see the price of corn go up. More farmers are taking hay crops out of production in order to grow corn. I dont blame them when corn is selling for $4 per bushel. It also increases the value of my hay crop since less is being produced. On the other hand, I want to see the price of corn and other grain commodities skyrocket. I want the middle east, who imports massive amounts of our grain (such as Iran) to pay the price and feel the gouging we get from buying oil. After the way they have been acting, they need to see that they are not as much in control. We can live with less oil. Try living without food. Go eat your camels.
Doug, Little River, Texas
corn was $5.00 bu. in 1995. I believe Clinton was president. Nobody complained about the poor people around the world starving because of the higher prices. Supply caught up with demand and prices fell. Sugercane will grow well in certain areas but not in the corn belt. Gov. subsidies on corn acres is nothing, not worth the trouble and humiliation of hearing the taxpayer complain. I think we should deny the gov payments and plant what we want to, oh yea we can plant what we want to anyway with "Freedom to farm act" passed by Bill Clinton and still get paid the same. The American Farmer is the backbone of this country like it or not. If and when we run out of fossil fuels the farmers will hook up the mule and plow and put food on the table again for this ungreatful know-it-all society we live in today. Food for thought.
beaner, roosterpoot, ar
Actually, this wouldn't be an issue, if the government would use Hemp, which produces more of what they need than corn, corn and such does not have the best yield when it comes to this.
J, Eureka, USA / Ca
In response to the Europeans (George William Taylor specifically), we have trees to cut down because they have been managed for years. How many trees do you have, where did they go? You just figured out that having trees around is good, how far advanced is your science? And sorry, I am not about to eat BSE infected cows. The corn price surge is only temporary. The corn that is used in animal feed is usually only the kernal, excluding ensilage, engineers are working on making machinery to separate the cob from the stalk and get the best of both worlds. The machinery should hit the market in a year or two. This will be beneficial to all involved (minus the cost of new machinery of course), the corn farmer gets paid twice, the increase in corn production will lower prices for feed, and there is still the stalk for ethanol production.
Jim, bangor, maine
Maybe theo needs to remeber basic biology. As the corn crop grows it takes CO2 from the atmosphere during photosynthesis and then produces cellulose which is the crops main building material. When its burnt this carbon is returned to the atmopshere, therefore there is no net increase of CO2 in the atmosphere.
Henry, Bristol,
dear americans sorry for being bloody minded but
why not just buy english and scottish beef from your
buddies in the uk it tastes better than yours and I bet
that our scientists will solve the global warming problem
before your team where way in front already we have
even restarted planting trees you silly lot are still
chopping them down.
george william taylor, hull, uk
Theo - The idea is that there is no NET change to the carbon content of the atmosphere; as long as there is no net reduction in maize, these plants will absorb all emitted CO2 back out of the atmosphere. Obviously, if you do this unsustainably, e.g. by harvesting but not re-planting, there will be a net increase in CO2.
Richard Jack, Edinburgh, UK
Just another casualty of St Al Gores eco-whacko's. To quote a French Lady. " Let them eat cake ".
Desmond Taylor, Houston, USA Texas
Can the great American love of the car be the key which overcomes the great American love of obesity?
Malc, Istanbul, Turkey
About time; meat is too cheap and does not reflect the true costs. If this leads to people cutting back consumption it may have a bigger impact than any obesity gene.
However, there is a further point and that is that biofuels are not the answer if we wish to maintain some level of forest cover in the world.
Alan, Spalding, UK
This is a good thing. If you ask me, the americans could do with eating less meat. This may help reduce their problems with weight and help the environment.
Vik, London,
I know I am getting off topic but to address the comments made by James, Lawrenceville, GA / AMERICA.
No wonder the majority of the world population do not think highly of Americans with this type of sentiment being extolled by you. Americans do nothing unless it benefits themselves and if it also benefits other countries that is a by product and not a design.
I realise that your attitude is not representative of Americans but frankly no wonder everyone thinks Americans are arrogant and boorish.
Joseph Kellie, Edinburgh, Scotland
"The sky is falling, the sky is falling...." yelled Chicken Little, and all the anmimals in the farmyard rushed hither and thither chaotically. I guess this rubbishy stuff about carbon and CO2 (there is far more nitrogen in the atmosphere!) and "global warming" [sic] has got all the nutcases and sad people hooked! Oh well.
John S M Roberts, O.B.E., Seaford, England
I'm getting so sick of seeing articles referring to ethanol as a way to reduce carbon... HELLO?? did everyone forget basic chemistry? Ethanol is a carbon based molecule, just like the *evil* fossil fuels. And like all carbon based fuels, combusts to produce H2O and... Guess what? CO2 : that evil substance that everyone seems to want to get rid of for some reason. So what is the point to this ethanol push? It just mucks up the economy, and it isn't even useful to reduce dependance on foreign oil...
Theo, asheville, NC
After reading all the comments, I can say that nearly all the posters have little to no understanding of the issues at large. Even the journalist that wrote the original story is at best under-informed, and slated at worst.
Bob, Colby, Ks.
So, either we need to end farm subsidies, which reduce crop yields to increase prices
OR
switch ethenal production to a sawgrass base, which is something like 3 times as efficient as corn.
The solutions are there, we just need to be brave enough to go through with them.
Matt, Boonville, Missouri
It's only temporary. Cellulosic ethanol is on the way. There are several plants operating and several coming on line, and there is new technology that can triple the output of ethanol from switchgrass and miscanthus. Not only that, but several automakers say they are in the process of developing plug-in hybrids. That will lessen the amount of ethanol that is need by a whopping amount.
I think your article is too hysterical.
Swen, California, USA
After reading the bio-fuel / meat price article, the following question comes to mind .... Does a human exist in the EU that doesn't whine and complain about the "Evil American"? America has pulled the rest of the world into a state of well-being unknown in human history. Think not ... tell me what the EU has contributed, other than bad teeth and nasty comments? Walk everywhere you go if it makes you feel good. Ride a bus or train if it suits you. I'd be willing to bet that most of you EU whiners would kill to ride around in a SUV. If you can't run with the big dogs, stay on the porch.
James, Lawrenceville, GA / AMERICA
Using food stocks to generate ethanol leads to higher consumption of ethanol-gasoline fuels. The energy yield from a gallon of ethanol is lower than the energy produced by a gallon of hydrocarbons. We burn more of e85fuel to go than hydrocarbons to go the same distance.
There is no pipeline infrastructure to ship alcohol in bulk. Alcohol attacks the seals in current pipelines. It must be shipped by truck. This adds to its cost.
Walt Volland, Surprise, AZ
John says, "it is our belief in the law of supply and demand which is escalating climate change!" Meanwhile, 100,000 years ago it was hotter than any of us can imagine; 50,000 years ago it was colder than any of us can imagine; and we've understood the law of supply and demand for less than 100 years. As usual, the carbophobes seek refuge in ignorance for their salvation.
Erik, Philadelphia, USA
More basic math. When corn prices go up $2 per bushel retail pork prices have to go up less than 20 US pennies per pound to cover all of the feed price increase.
Corn on a cost per pound basis is a very low cost piece of any food product (tortillas and meat included).
Get out your calculator and note pad if you don't believe it. In doing so you would be doing more actual thinking and learning than the folks writing the articles about food inflation and it's link to corn prices.
Food producers world wide can not absorb the increased prices of all that we buy and absorb those costs. High priced energy with or without ethanol will lead to higher priced food.
Jeff Abbey, Cropsey, USA/ Illinois
Obviously the Michigan writer doesn't realize that he is getting up to 10% ethanol in regular gasoline. Adding 2 gallons of E85 to his tank of regular gasoline will increase the ethanol level significantly and further reduce his fuel mileage. In addition the higher ethanol level could potentially damage to his fuel system if it wasn't designed for high ethanol levels. The use of E85 fuel is only recommended for dual fuel vehicles. The only way the use of ethanol makes sense is if Congressional Brain Trust removes the 54 cent tariff on imported ethanol. Unless this occurs, we'll be paying more for motor fuel and more for meat and corn based food products. This is a perfect example of "the law of unintended consequences". Good intentions do not overcome economics and cold logic.
B Parker, Katy, USA/Texas
Distill for liquor, not for fuel!
Mike, Tempe, AZ
Sorry, the ethanol boom was because of MTBE souring ground water. Not just from tank leaks either. Second, the tax credits on ethanol were put there by the Carter Administration, not Bush. Bush had little to do with the investments made by farmers to build the newer ethanol plants. Not ADM, Cargill, or Monsanto either.
Ethanol is a valid substitute for MTBE, but it is not the total answer. But one that in the moment, fit the infrastructure, and could be used in existing cars. Yes biomass can be used as well as cellulostic material, but as of now, there are no commercial plants in operation. Soon, but not now.
Ken Schmidt, Mason CIty, Iowa
It is our belief in the law of supply and demand which is escalating climate change, as this article is highlighting.
It is our belief in our right to plunder this planet which is escalating climate change.
It is also our political beliefs, that support the other two beliefs, which are escalating climate change.
These fundamental and traditional beliefs are the cause of the problem - and therefore cannot resolve it.
Unless and until we review how we look at life, our relationship with each other and this planet, we will repeat the mistakes of the already doomed carbon market as well as the already doomed ethanol fuel replacement.
New thinking and strong leadership, without vested interests, are needed now more than ever in our history
John Coombes, Sevenoaks, UK
Why are Americans so critical of this idea? Because you are scared. You are scared of any change that might threaten your freedom (what's left of it), your cheap meat, your cheap fuel and your cheap junk you buy at Wal-Mart. For once, please consider the overall global impact of your selfishness.
Carmen, Nashville, TN
Small priced to pay! I add 2 gallons of E85 (www.e85fuel.com) to my 17 gallon gasoline tank every week and the car runs great. Gets me about a 10% ethanol content and enables me to burn 200+ gallons per year from American farmers that otherwise would have been bought from who knows where. I say........buy Midwestern, not Middle Eastern!
Ron, Jackson, Michigan USA
All Conspiracy Theories aside, there is an existing infrastructure in place right now, for delivering Ethanol to the market. That is why it is being touted as a real alternative fuel, following Brazil's model.
That food prices should rise is the logical outcome of using biologically derived fuels since we must grow it. The cautionary tale here is that even if we could turn all our farmland to fuel production, we could NEVER substitute Oil at current, let alone future, consumption rates.
And for the record, we should subsidize American farmer with every red cent we can spare since that is the one 'Industry" that can not ever afford to have outsourced; think tainted Gluten from China! Some "business partner"!
Ray Valera, New York City, NY
Umm, I keep seeing these stories about "reducing carbon" with ethanol use... does anyone remember basic chemistry? Ethanol (all alcohol) is still a carbon based molecule. and just like all carbon based fuels (oil and natural gas included) the basic by products are *still* H2O and CO2!!! so what the heck is this accomplishing other then mucking up the food supplies, logistics, and economy in general?
Theo, Asheville, NC
I've heard of this byproduct from producing ethanol from corn which can be used for feeding cattle, so don't see a shortage in feed for cattle. It's just a scare tactic used to drive up meat cost at the market. It may take a little while to figure out movement of the byproduct to feedyards but that will be straightened out shortly I'm sure.
Gary Cain, Sand Flat, Texas
Umm, I keep seeing these stories about "reducing carbon" with ethanol use... does anyone remember basic chemistry? Ethanol (all alcohol) is still a carbon based molecule. and just like all carbon based fuels (oil and natural gas included) the basic by products are *still* H2O and CO2!!! so what the heck is this accomplishing other then mucking up the food supplies, logistics, and economy in general?
Theo, Asheville, NC
In all of the hype about global warming, alternate fuels, and big words, watch two things. Cost - All of these schemes have been studied, some for over a century, and were dropped because they are hediously expensive. Scientists or Engineers- Any pronouncement about future costs, from a scientist, means he is playing engineer; they are two different types of people. Most engineers are silent now; the heroes have been destroyed. You like corn, they will engineer corn, you like wind mills, they will engineer wind mills. But you will pay huge costs, and suffer shortages, in the coming years, due to the abandonment of coal and uranium.
I have spent forty years in energy engineering.
R. L. Hails Sr. P. E., MD, USA
Its worth noting that when I was a field scout in corn-dense western Kansas 1982 1985, the per bushel cost of corn was between $2.18 and $2.30 and farmers were going out of business left and right.
Thanks to vast US government subsidies and Bushitlerburtons opposition to meat consumption, 21 years later, it has soared to $3.10. No wonder farmers have such attitudes.
Jeff, Houston, TX
Governmental tinkering with markets leads to higher prices?
Who'd a thunk it?
Dennis, Boston Area, Massachusetts
If you want to reduce your dependence on imported energy, then use your own natural resources. Conservation is fine but will not satisfy our long term energy needs. For the short term, we will be dependant on petroleum for energy until we come up with a viable alternative. We have resources available in ANWR, off both coasts, in the Gulf of Mexico and, internally, in various parts of this country. Drill, extract and expand our refining capability. Eventually, we will solve our long term energy problems. But we can't solve it by thinking in immediate terms.
Rob, St. Louis, Mo.
Thanks, Greg.
bob lee, west monroe, la
This is propaganda. Food prices are NOT rising
because of biofuels. Food prices are rising because
of rapidly growing populations. But because rapid
population growth is almost always due to government
policies designed to keep wages low ('fight wage inflation')
we apparently can't talk about it, so the media make
up distractions.
The bottom line: there is no more arable land or fresh
water and the green revolution is now tapped out.
Every new billion people is that much less for everyone...
But for the rich, low wages and high commodity prices
are very very sweet.
Tim Gawne, birmingham, AL
Corn is not the only source of Ethanol. Sugar beets and sugar cane work just as well. The corn business is quite influential in the US. Just check the labels on all the foods in your kitchen. You'll find Corn Syrup and High Fructose Corn Syrup in bread, soft drinks, jams, jellies and hundreds of other items you consume on a daily basis. The corn syrup is in those products because it was initially an unused by-product of corn production. The corn "industry" had to find a use for it, and found it in processed packaged foods. SOOOOOOOO.....if we take it out of those foods and use a healthier sweetener, then we have plenty of corn for Ethanol and for livestock. Consequently, your food will be healthier without the added corn syrup sweeteners and you will perhaps lose some (much-needed) weight !
Josie, Jackson,
The solution to the energy problem is two fold. Resume domestic crude production in all areas crude is available. Two, get the government's nose out of it.
The coming ethanol fiasco is what happens when the government enters the arena of business and the market place where government has no business.
Donald E , Fairfield Bay, Ar
As Mr Lou, Arnold points out we have been paying subsidies to farmers for years to not grow corn What do you think the farmers are going to do now with their BLM (Bureau Land Management) acres? Get paid a poultry amount for not growing or start planting corn? That means that OUR tax dollars are not funding the farmers for NOT farming.
Second point is that nothing is wasted. The corn gluten is extracted from the corn to produce the biofuel. The remaining mash can be used for low-value animal feed, corn oil can be extracted, and paper can be manufactured.
Last point is that in 2005 27% of food produced was exported. If the price of corn goes up then our GDP will also go up as we pass on the cost to other nations.
windy, Las Vegas, NV
This is just brilliant. Let's take part of our food crop and use it for fuel. I wonder if any of the "global warming" crowd ever actually thought this through. Ethanol does not have the same power to weight ratio as oil, so more must be burned to have the same power in the engine. It can't be transported over vast distance in pipelines like oil, so it has to be shipped in rail cars or tanker trucks. So, we're using more fossil fuels (tractors, rigs and trains) to deliver a product that we must burn more of (i.e. reduced efficiency) to reduce our "carbon footprint". While it's nice that corn farmers are going to make some money, I'm rather irritated that I am going to have to pay more to feed my family, thanks to enviro-nuts.
Tom, Houston, TX
I wonder how many more people in third world countries will starve so that we can keep uninhabitable regions of Alaska from being drilled for oil. This makes absolutely no sense. THE MARKET WORKS! PLEASE QUIT SUBSIDIZING ETHANOL PRODUCTION! If we run out of oil, which I believe is impossible, then it will be economical be in search of so called "renewable energy."
Shawn Lazeski, Pleasant Unity, PA
lets try to put a possitive face on this issue.we can kill
two birds with one stone.firstly,we overweight americans
will have to change our high calorie diets,and we will be
just a little bit less dependant on middle east oil.
terry, san jose, ca. usa
Seedcorn is $235.00 a bag. Anhydrous is $500.00 a ton.Starting to get the pic city slicks?? Eat your Lexus and your stock portfolio. I could go on and on. Farming is easy everyone should try it! "I don't need those darn farmers...I get my food at the grocery store!"
Bruce Baise, New Berlin, Ill
It seems ironic to me that for all of these comments, not one of them addresses that the NATURAL food for herbivores is GRASS, which is free food. As grass based livestock farmers, my husband and I are continually astounded by the choices the average livestock farmer of today make. Yes its true that the middlemen set the profit margin for those utilize corn as a feed choice, but then farmers must also comply with other industry standards, such as utilizing growth hormones and antibiotics. Corn creates an acidic gut in the cow, which weakens their immune system and thus antibiotic use is made necessary. Both growth hormones AND antibiotics are passed through to the consumer via the meat and milk. Not a wise choice for anyone involved. While it takes longer for livestock to grow on grass, and takes more work to rotate pastures, it seems a smarter choice to opt out of the "modern method" and choose the truly sustainable, healthy, affordable, natural method of livestock production.
Laura & Mike , southern, il,
If it is true that we have to burn a gallon of gasoline to produce a gallon of ethanol, who is going to stop this insanity?
Pete Drum, Carmel, IN
Ok the last paragraph touches on the solution to this dilemma....Several years ago the US corn market was in a slump..had to come up with a way to keep it viable...voila...high fructose corn syrup...this vile product now uses about half the corn produced in the US. So go back to regular sugar...beet sugar, cane sugar...whatever. Then there will still be plenty of corn to go around, not to mention loads fewer health problems.
Nathan, Montrose, Co
Barrhead - Karls comment was in quotes - he's being absolutely sarcastic. My take on the comment is, he's referring to the media backlash when the Oil Companies revealed their profits last year - immediately, everyone wanted to take oil company profits (thru taxes) - just because they deemed the profits to be obscenely high. Hillary Clinton ACTUALLY SAID that she was going to take all those bllions in profit and spend it on alternative energy research. Socialists just LOVE deciding how other people's money should be spent, don't you think? So I guess Karl is saying, why not the farmers too? Simple fact is, whether socialists like it or not, ethanol is subject to Market forces just like any other good or service. Whoever takes a risk deserves whatever profit or loss results from that risk. Sure, socialists will do what they can to "force" people to buy ethanol, but ultimately ethanols success (or failure) will be measured capitalistically-again, whether they like it or not.
Scott, Youngstown, OH
Maybe a perverse positive effect of increaed corn prices reducting meat production will be the reduction of total methane emissions from the US livestock industry. After all, methane is a more potent greenhouse gas than carbon dioxide. Methane is 60 times more potent than CO2 at capturing heat energy, though it lasts for a shorter period of time in the atmosphere.
Ian Parnell, Tsawwassen, Canada
If you want to decrease oil imports, then use your own natural resources (Not corn). Drill in ANWR, off the coasts, in the gulf and increase refinery capacity.
Rob, St. Louis, Mo.
"Aparanly proffits are illegal and unethical. I wish those who think that way would try to see how many businesses they could keep afloat with no proffit ...
NikNka, West Coast, CA"
I understand that most of the actual farmers across america are probably suffering in terms of keeping up with profits, but it is exactly this profit-seeking mindset that unfortunately ends up forcing many lives to suffer for the benefit of the more evolved. Our main food animals are evolved enough to have emotions and to feel suffering, and by pumping these beings with corn and antibiotics, we create unneccessary suffering that is unique to the past fiftyish years of civilization. Never before have we systematically brought forms of life into existance to just as systematically destroyed them. Turning life into "input corn --> output food" is just morally reprehensible.
It's one of the catches of capitalism, unfortunately.
David, Dallas, TX
Yes, absolutely, look at sugar cane in Brazil, and see the Law of Unintended Consequences at work. Let's clear-cut more of the rainforests - the lungs of the planet - so that people can feel good about an infinitesimal improvement in emissions. And if you factor in production costs, ethanol is a net loser in terms of energy efficiency.
Alex, San Francisco, CA
All cars and small trucks in Brazil run on ethanol made from sugar cane not corn. We could make ethanol from sugar cane and sugar beets and not run up the cost of tortias in Mexico. If the president made a executive order to have all our cars and small trucks run on sugar based ethanol the price of a barrel of oil would be back to $10. Back in the 70s a local news cast interviewed a Virginia chicken farmer that ran his cars on methane from his chicken manure. Germany faught WWII with synthetic fules.
We don't need middle east oil
Bob Mullins, Virginia Beach, VA
Um...why are people blaming environmentalists for the rise in ethanol production. This 'alternative' energy program is a child of the current administration's bizarre energy policies.
bill, jacksonville, fl
Don't you all get it? We are taking away critical food production for an industry that doesn't exist and even if it did is still less efficient than the one we have. Let's say In a hypothetical world, what happens if some freak weather (imagine that!) ruined the corn crop for one season and we are all on this ethanol system? Well I guess we would have even greater fuel production fluctuations than we have during hurricane season. So what gives? Why are we being hyped into this doomed system? The UN said it. Were you listening? To paraphrase, the control of food production is a weapon. Control the food and you control the people. Now ask yourself why?
Pam, Palm Beach, Florida
As usual the liberals hurt the people they purportedly are out to help: the poor. I see obesity will soon rise amongst our poor as they're forced to subsist on diets of macaroni and cheese because it will be the only food affordable anymore. Saving the planet by using up all the food sources is a great way to cut down on overpopulation, isn't it?
Let's see, makes environmentalists happy, animal rights people happy, family farm advocates happy...and the welfare administrators and advocates happy as more people will be forced onto their rolls.
I'm all for finding alternatives to oil, but not in this sudden and haphazard manner where the impact is more negative than continued reliance.
Alan, Burlington, Vermont
Barrhead - Karls comment was in quotes - he's being absolutely sarcastic. My take on the comment is, he's referring to the media backlash when the Oil Companies revealed their profits last year - immediately, everyone wanted to take oil company profits (thru taxes) just because they deemed the profits to be obscenely high. Hillary Clinton ACTUALLY SAID that she was going to take all those bllions in profit and spend it on alternative energy research. Socialists just LOVE deciding how other people's money should be spent, don't you think? So I guess Karl is saying, why not farmers too? Simple fact is, whether socialists like it or not, ethanol is subject to Market forces just like any other good or service. Whoever takes a risk deserves to keep their profit, whether it's a farm or oil company. Sure, socialists will try to "force" people to buy ethanol, but ultimately ethanols success will be measured capitalistically -again, whether they like it or not. And I truly hope they don't
Scott, Youngstown, OH
By pushing ethanol I can only assume that Mr Bush actually wants to destroy the ecological health of our planet.
Look and see the increased destruction of the Amazon/ African/ Indonesian rainforests arising from biodiesel demands pushing prices.
People! Please look into Algae farms. They are sensible. They may produce 15,000 gallons of oil per acre PLUS fertility as a waste product! (This compares with the best other bio-diesel soy-ethanol 150gallons per acre) Plus CO2 scrubbed out of the air. Cheap to construct. Safe to operate. Let`s get sensible.
Algae farms can solve every nations problems with food & fuel security.
Don`t wait for government or business to act.
Act yourself. Local communities can fund the development of local fuel & fertility supplies by & for themselves. Pioneer style.
We don`t need to legislate, we need to co-operate, as neighbours in a bioregion, cluster up our available funds & invest in ourselves.
kerry, Killarney,
Scott, Hamilton, USA NJ mentioned there are only 50 locations pumping ethanol into cars. ???
Every gasoline pump in the U.S. has the capability to pump a 10% ethanol blend. This is why we send 4.8 million gallons per week to Sewaren, NJ? Or 2.4 million gallons weekly to Albany, NY? Or almost 1 million gallons per week to Philadelphia, Baltimore, and Richmond, VA combined? Are you even aware of the hundreds of E-85 pumps out there in states all over the U.S.?
I have spent the last six years examining the industry many here so easily nay say. Not that I am some corporate shill, but it has become a major impact in Rural America. Better in the Heartland than in Iran or Saudi Arabia.
Farmers getting up to 20¢ per bushel at the plant over the bids at the local elevator. And if they invested, they get a yearly dividend.
Ken Schmidt, Mason CIty, Iowa
Quit blaming the farmers. They represent capitalism at its finest, including engagement of enormous amounts of risk that would deflate your city boy meat and two veg so thoroughly that a truckload of viagra would never compensate. You get the government that you vote for and deserve, so live with it. Your liberal leaders and their policies are the real Buttandall, but try getting them into the fuel tank. Want better ethanol prices? Why not act to remove the US BIG SUGAR subsidies in place via protectionary tarriffs? MTBE didn't affect the price of foodstocks, but your rocket science EPA decided to pull it from the market rather than fix the leaky tanks that it was stored in. You call that smart? Like Noel put it, electric cars and photovoltaic would be the smartest things to use for the largest share of commuters. Who killed the electric car anyway? Electric won't help with the heavy freight, so you need Biodiesel to help say NO to OPEC. Thank your farmers and chemists for it.
John B., Columbus, Ohio, USA
I thought Pres Bush was a free trader yet we have a per gallon tax and an ad valorem tax on imported ethanol from Brazil. Not to worry, we can buy anything we need at WALMART, with products just off the boat from China, and at cheap prices too.
Bill Riley, Moses Lake, Washington
I am glad the farmers are getting the benefit of a free market economy that sets the price of their product through supply and demand (excepting certain USDA subsidies:dairy, tobacco, etc), higher rather than lower.
I do have one conern: since ethanol from a corn crop returns no additional energy than it takes to plant, harvest, and process it, why grow corn for ethanol? Some of us "old farmers" who "graduated 8th grade in 1940" know that sugar beets are a much better crop for ethanol production! Once again, "brilliant solutions" for agriculture from other-than-ag sectors.
Those who do not know the lessons of history are doomed to repeat them..... ever hear that before?
PG Jackson, Danville, Illinois, USA
We knew this would happen. You can't take a food crop and have competing interests with fuel needs and not have a whole bunch of cause and effects that ultimately drive costs up for everything and everybody... even the poor. The only winners are the corn farmers. Maybe we'll start hearing about taxing the farmers for having Windfall Profits just like Big Oil ? With this incentive, the corn farmers will be motivated to plant corn each year because of high prices and not rotate every other year with beans, thus depleting the soil. Then they'll need more fertilizer and other chemicals that a made by large evil Petrochemical companies, which then can run-off into wetlands, polluting water and effecting delicate aquatic animals, which then will outrage the environmentalists, which then comes Full Circle because the Environmentalist, Global Warming Alarmist, Sustainable Energy, Vegan, Birkenstock Wearing, No War for Oil types are the ones that started this whole thing.
Greg, Minnetonka, MN
BAD IDEA. Ethanol production from Corn (Maize) in the United States is the result of lobbying efforts by Con-Agra, Monsanto, and others. 15% reduction in mileage from the use of ethanol, as much power to distill it from corn as you get out of it., not the 8:1 ration of power to ethanol ratio the Brazilians get from sugarcane based production of ethanol. A bad joke at best carried through for corporate interests by our government, where bad dreams become reality and pigs can fly due to pork barrel politics.
Jeff the Unhappy, Houston, Texas
If people want a greener environment and cleaner fules yet still have a plentiful and inexpensive supply of food, then nations like the United States should re-legalize the production of industrial hemp! Hemp can meet the need for biofuel without having to cut into the world's food supply.
Gene Trosper, Riverside, California
The feed shortage will be a slow correcting product but it will correct.
The distillers will have to move the grain after the fact. The protein needed for cattle feed will still be in the by-product, thus there will be an ever increasing product to replace what is taken now. The feed lots will use the vast majority of the waste, removeing some of the pressure felt in the commodities markets today.
louis, dallas, tx
I would happily pay the one dollar subsidy if we could reduce overseas oil imports by at least 10%.
ned, macon, ga
Maybe now the Government can stop paying farmers to NOT plant fields (where I live there are many) and start using that (taxpayers) money to buy the corn that isn't being grown there now.
RJ, harrisburg, PA
Yo' Europeans. Yea, the ones chortling about the price of corn and the popularity of ethanol and overweight Americans. We won't be getting thinner. You will since we have the capacity to grow enough to feed the rest of the world. I guess you'll be getting smaller portions. You probably believe in global warming too. Do I sense a twinge of guilt about inventing the Industrial Revolution? Rotting leaves produce more carbon than humans. So let's start cutting trees down too? Oops, you already deforested Britain by building the Royal Navy. Be careful about throwing stones. Eh mate?
Rich, Nebraska, USA
I really have to wonder about some of these tree huggers. What's better? Running cars on Ethanol - or chopping and burning the Brazilian rainforests to make room for switch grass? Well they probably don't even know it, but if we have to drop the supply of livestock by one billion since there's not enough corn to go around, ...greenhouse gasses will fall considerably as we'll have a billion less farting cows around. Let's face it: Go Nuclear, and electric cars.
Chris, NYC, US
I raise corn and it is about time we get a decent price for what we grow. Even at $4.00 a bushel it is a bargan for the user. The food dollar that goes to the corn grower is so very small. Most of the cost paid for purchasing food goes to the processiing not to the original producer. Look at what a bushel of corn cost in 1960 and what a lawyer charged in 1960. Compare that with today. Don't complain about $4.00 corn.
Dave Herther, Vallonia , USA/IN
Manufacturing fuel from corn is extremely inefficient because growing the corn itself is so energy intensive. This is why Brazil uses sugarcane and switchgrass. The only reason the media-politics driven US is absorbed with corn to ethanol is because it is politically expedient, not good for the country. How about a sanity check, guys? We're gettin' nowhere FAST!
Jayden, Birmingham, AL
Ethanol production from Corn (Maize) in the United States is the result of lobbying efforts by Con-Agra, Monsanto, and others. 15% reduction in mileage from the use of ethanol, as much power to distill it from corn as you get out of it., not the 8:1 ration of power to ethanol ratio the Brazilians get from sugarcane based production of ethanol. A bad joke at best carried through for corporate interests by our corporate run government.
Jeff, houston,
Ummm... interesting points, Sheila and Christian, but isn't it the UK that has the greatest percentage of per capita obesity in the EU?
Tom, Redlands, US
It doesn't take a genius to figure out that HEMP is the best sustainable biomass and biofuel source on the planet...but then they'd have to admit that the last 60+ years of its' illegality was a lie. Henry Ford used hemp ethanol to power his experimental cars...one acre of hemp replaces 4.1 acres of trees for pulp and biomass...hemp seeds...30% oil by volume...switchgrass...another GW fantasy. Corn REQUIRES petrochemical fertilizers to grow, so its usefulness is suspect...and its use artificially inflates prices from milk to meat, not just gas...they can launch a space shuttle...why can't they make cars that run on biofuel?
rodan, Littleton, ma
Ethanol is the worst idea for fuel! why doesn't the country convert to clean diesel? diesel is the most effecient fuel out there, and there are plentiful fields of sand oil up in Canada. Ethanol offers worse performance, and worse milage. Clean disesel offers great performance and great milage. that can hold things over till fuel cell technology continues to progress.
Jeff, Mesa, AZ
I guess now is a good time to become a vegetarian. :)
Kelly, Anaheim, CA
Why do people not look at sugar cane. In brazil it is what they use. It would also resurrect a dying industry in the south.
John, Manalapan, New Jersey
I work in Ag, make a ton of money, eat what I want, drive an SUV, and I could care less if I pay more for food and fuel. Let's argue about something else.
PD, Bloomington, IL
We would not have these supply problems with agg if we would stop paying farmer not to grow crops. The gov't does this to keep prices at a sustainable level for the futures market. Looks like a lose lose situation to me. I don't need anyone's opionion on what and how much I consume whether its corn or gas. I PAY FOR IT!! and the supplies are there to stabilize markets if need be. This is the first step in declining global markets due to Glob Warm. If you feel the pinch now just wait and see how much "saving our planet" lol is going to cost your wallets! We can't be thit conceded as a homosapiens to beleive that we can ruin or fix this largely chaotic "scientificlly speaking" and dyanamic ecosystem. The earth has purged itself of impurites before and it will do so with or without our egotistical interventions.
Sam, Jacksonville, Florida
The Government is only avoiding the REAL problem, developemnet of ELECTRIC transportation methods, and better Public train routes.......Save the grain to feed the PEOPLE, not the oil industry.
jon, Chicago, usa
Does corn ethanol increase oil profit and use?
Charlie Peters, San Francisco, US/California
Absolutely fabulous double outcome for liberals who are just dying to tell us all what to do.
Bill, San Francisco, CA
It's about time the farmer got a fair price for his crops. I hope the price continues to rise so they can see a profit for a change. Food costs the Americans such a small percentage of their income, they can afford to pay more. By the way, corn is corn, not maize. That is a totally different crop.
Dale K, Tulsa, OK
Biodiesel is the answer. made from non-food sources.
corey, somewhere, USA
Oh, lovely. Now Americas 100 million plus of poor people--including millions of children--can go even hungrier, thanks to tree-hugging well-fed yuppies and rich people and their gas guzzling big SUV's and luxuray cars. Gee, thanks so much.
Nancy, Glens Falls, USA NY
Looks like it's time to become a vegetarian!
Kim Righetti, Upland, Calif. USA
Having parents as farmers, who work all the time and never take a vacation, or have a large disposal income-what large profits. I was told to go to college and get a job where I could have fre time and make a decent living. Ignorance is bliss, so Karl keep up the good work.
Bill McPherson, San francisco, CA
American farmers are the smartest most productive in the world. They are more than capable of producing all the grain necessary for both food and fuel. Furthermore, a by-product of the ethanol industry is high quality animal feed, DDGS, that competes with corn for it's place in the feed of poultry, swine and cattle. As ethanol production expands, more of this high quality feed will become available and relieve the high feed prices. Some animal feeding operations may have to move to new locations near the new feed, but in the long run it is better for our food and fuel security to have a strong ethanol industry.
Jeff, North Port, FL
The use of foodstuffs to make gasoline substitutes is wastful. The use of corn causes meat and poultry costs to rise because of increases in feed costs. Cars get lower mileage using ethenol, at least mine do. The Government wants to use Hydrogen which is currently very costly to produce. LISTEN UP People right now in France a company has a car in development that runs on compressed air. Why don't some of our capitalist genuis's
check that out . MDI corp. is the builder!!!
Bob Goddard, Plainville , MA USA
Let's eat food and burn fossil fuels. It's cheap, it's easy and nature made it for us. Isn't NOT burning fossil fuels and violation of nature itself? All the carbon in fossil fuels was once in the atmosphere, let's be good nature lovers and put it back there where it belongs!!!
Gene, Kansas, USA
Everyone stop! think! don't you know because the price of corn is going up the projected corn crop planted is higher than the last year of wwII,So if anything it wil be just one growing season away from too much corn..also there is lots of corn on the worl market that just rots in silos..so shut up and learn you subject before you painic!!! never underestimate the human spirit...
paul, hollywood, CA
I wonder if the High Priests of the Immaculate Global Warming Church of Holy Consensus foresaw the cost of food prices with the same clear vision they claim they have for the next century? Ah, well if the alleged global warming does not cause starvation then their purification rites certainly shall.
Wesley Cannon, Denham Springs, LA
Hello? Ethanol gets lower MPG than gas, but, hey. There are other practical issues. It requires 131,000 BTU's to produce a gallon of ethanol from corn (not counting to energy required to produce the corn in the first place), and that gallon of ethanol yields a total of 77,000 BTU's of burnable energy. DO THE MATH. And then there's the damage corn production does to the soil - somewhat manageable until the scale necessary for the envisioned fuel production program makes that impossible - THINK DUSTBOWL. More bad science from the short sighted PC crowd. And we get to pay more across the board for everything and get no benefit from anything.
sandy, springfield, va
Producing ethanol from corn creates a coproduct called Dry Distiller Grain Solids, or DDGS. It is basically corn with the starch taken out. It is an excellent feed for ruminants (cattle) and is inexpensive. The majority of the cost of beef that the consumer pays is due to the processing and transportation; only a small portion is attributable to the cost of feed.
The only people who want to see alternative fuels fail are the terrorists and tin-horn dictators who get their power from petrodollars.
Brian, Fairbury, IL
In the elections next year watch how much ADM Archer Daniels Midland and it's subsideries contribute to political campaigns. Especially Presidential campaigns.
Charles , Mooresville, IN
I hope taxpayers enjoy paying a gasoline tax rebate to ethanol producers of 51 cents per gallon. If Iowa wasn't the first state in the presidential selection process, we would only use ethanol for whiskey. By the way if you love paying for ethanol, you will really go crazy for biodiesel made from soybeans. That rebate is $1 per gallon
Ray Dooley, Comfort, Texas
Aparanly proffits are illegal and unethical. I wish those who think that way would try to see how many businesses they could keep afloat with no proffit ...
NikNka, West Coast, CA
What about making ethanol from sugar? Brazil does it, and has been for quite a while. In the U.S., we even burn sugar to keep the costs of it up. The farmers, though, have had too much input in this issue. They have been hurt for a long time, but big agriculture has not.
Matt, Bayonne, NJ
Obese Americans could do with a slimming. What bothers me more is how higher corn prices are hurting people in poor countries like Mexico (tortilla prices are shooting up there). I don't think when the choice is between momma gasing up the SUV with ethanol and somebody eating, that we should face that choice. Momma needs to walk, ride a bike or maybe take public transport.
Bob Macdonald, London,
So Americans are at last going to have to tighten their belts( literally) and eat less meat. If a shortage of fuel also leads them to walk more and drive less that will make them even fitter and leaner. Could this be the cure for the obesity epidemic?
Sheila, Leicester,
On a slightly tongue-in-cheek but serious note, It might actually help to reduce the obscene food portion sizes you guys eat.
Christian, Manchester, England
You cannot make ethanol from grass or trees on a commercial scale because there is little starch or sugars in grass/trees. When corn is used for ethanol production, enzymes chop starch into sugars and then yeast is used to convert sugar into ethanol (just like in brewing beer in your basement).
There are not yet enzymes developed that can convert trees/grass (cellulose) into sugars. So obviously there is a push for making ethanol out of cellulose, but it is not possible on a large scale yet.
Nick, Minneapolis, MN
I think it's fine that the price of meat is going up. We all eat too much of it anyways.
Mike, Newport Beach, CA
Hurrah! Green fuel and less meat for obese Americans! A win win I reckon!
Lisa, Milan,
By the way, prairie grass produces more ethanol than corn (maize). But the powers that be don't want you to know the truth. There is too much money to be made in industrialized ethanol production from corn (maize). Another missed opportunity to return the American heartland back to a sea of prairie and buffalo. What a shame.
Anthony, Las Vegas, Nevada
Confiscation of profits? That is rediculous and you are absurd. How about the government confiscate all that you have? I guess you would be opposed to that.
Ethanol is stupid and I cannot believe that Bush and the other idiots who run this country are hopping on the ethanol train. We need food to eat and now we have high costs for food and a fuel source that makes zero economic sense. Is there anyone who does not have an agenda who will make some good decisions for our country?
Jon Matthews, Elizabethtown, KY (USA)
It's about time America came up with a way to counter the OPEC cartel!
Cynthia Thius, Palatine, Illinois
Roger,
The ethanol is not so small. This year it will take 30 Million acres of farmland to grow the grain needed to feed this new industry. That is 2.1 billion Bushels of grain this year and the Ethanol industry will need 3.2 billion the next if this industry continues to grow at the same rate. This is adding real upward pressure on food prices across the board not just for meat. We can not grow enough crops to make a real dent in our energy needs. We should be focusing our energy elsewhere and end the subsidies for ethanol production
Jason, Nashville , TN
@: Terence, Carlsbad, USA Ca:
I can not believe that you are actually an American.
Sreuly you are from another country just mocking America
Felix, Munich,
Problem is, everything we eat in the U.S. is made of corn. Ever read "The Omnivore's Dilemna"? There isn't exactly alot of food at the base of the industrial food chain. If I remember correctly, the average american diet consists - although, indirectly - of over 50% corn. We use it for everything:
http://en.wikipedia.org/wiki/Corn#Uses_for_maize
And it isn't even healthy! I mean, really, high fructose corn syrup? Maybe energy isn't the only thing America needs to rethink!
Lee, Richmond,
I do not very often find myself agreeing with Fidel Castro. However, his complaint that we are taking the food out of the mouths of the poor to feed our gas-guzzling SUVs has some merit.
The really stupid part of the picture is that (as far as I can discover) the production of corn-based ethanol and its use as fuel has no significant net effect on the US consumption of fossil fuel and does not reduce CO2 emissions when the entire process is taken into account.
However it makes a few politicians and Hollywood faces feel good, which is, I suppose, what really matters.
Charles, Charlottesville, USA
I don't know where you got your numbers from but the last time I checked there were about 50 loactions in the entire US that were equipped to pump ethanol into automobiles. Until there is billions $$ invested in creating an ethanol infrastructure, there is no market.
Scott, Hamilton, USA NJ
Which ever way you look at it, ethically, environmentally or health wise we eat too much red meat in the developed world. At the same time because of both US & EU agricultural regimes do not produce it in globally fair and truelt economic manner. So to me the increase in beef price, and hopefully a down turn in consuption that follows at the expense of an increase in bio fuel production is a fantastic double winner for everyone.
Tom, Ealing, London
Here's a little news flash for all of you. I see a lot of farmer hate going on here. The farmer's aren't making any extra profit off of this. The fertilize, fuel, and seed companys are making sure of that. It constantly baffles me how everyone is always so quick to bite the hand that feeds them. Farming is the only industry I can think of where the profit margin goes down every year. The last few years it has been real tough because the high oil prices have taken away more money than the farmers have gained on grain prices. It takes a lot of fuel to run those tractors that do all the planting. It also takes a lot of fuel to make nitrogen and fertilize costs have doubled in the last few years. As for the seed companies, well they are just straight up greedy and as soon as they heard farmers were going to be growing more grain, well the first thing they did was raise the price of their seed. No its not the farmer getting rich at all!
Curt, Spencer, IN
My family is in the dairy farming business and I can honestly say that the rise in corn prices has directly affected their income. Before they were just scraping by, now they are heading deep into the red and they are going to have to sell out.
Corn prices haven't changed in the past 10 years and it is about time we consumers pay a bit more for our food(hopefully some of it gets to the farmers). I hope for all the dairy farmers out there that not only beef prices rise but also dairy prices are risen so that they can offset the rising feed prices.
Don't forget that farmers do not set the price of thier goods, the price is dictated to them by the middlemen.
Also, not all beef, dairy, chicken, etc is produced by large coops that have huge margins but family farms.
Dan, Chicago, USA
Is anyone calling for confiscating the obscene profits of these unscroupulous farmers?
karl, white mtn. lake, AZ
What does this mean? For years farmers have been hit hard. I'm glad they get a chance to make a serious profit.
Read closely ! We have the cheapest food in the world. Thank a farmer!!! They will not be appreciated until it's to late, meaning the price of food is so high it can not be purchased, or the quantitiy and quality of our food supply is permantly damaged.
Think of the last time you heard the mention of farmers/Agriculture in a presidental debate. You haven't!!! It's due to the American farmer doing a excellent job!!!! Your Happy , have money to spend on clothing, cars, homes,ipods,cell phones,fuel and you have a consistent food suppy.
Sean, Petersburg, USA/TX
Make ethanol from grass. We have plenty of that in this country.
Mike, Owasso, OK
"Is anyone calling for confiscating the obscene profits of these unscroupulous farmers?"
You might want to check the profits of Fertilizer, Seed, Fuel companies. They are the ones who are making a killing with little to no risk factor. When the price of any farm product inflates the cost of goods used to produce the crop skyrockets. The farmers bottom line will be no better than when corn was $2.50 bu. and fertilizer was half the price it is today.
I'm ordering a new solar powered tractor today with all these obsene profits I will make. LOL Keep drinking the kool-aid
Eric, PB, MO
This will ultimately be a boon for third world countries whose exports are primarily agricultural. But then we go back to the same damn problem: external dependency.
Joshua Schaeffer, Cincinnati, Ohio, USA
i am a farmer and for the first time in my career i am going to make a fair profit. the majority of subsides only pay when the prices are low so the government is saving a lot of money and still guaranteeing a steady supply of food and fuel this is by far the beter answer compared to spending trillions of dollars to bring oil from the mideast
jan, cabridge, ne
Ethanol from switch grass (cellulose), I've heard of it. They are working on it. Corn is a commodity traded on the open market just like soybeans and oil. If there is a perceived shortage for the future, the price is driven up out of fear. If there is a perceived stockpile the price is driven down. This was why farmers were paid to not grow a crop at times (subsidy). We didn't want to loose our farmers incase we needed them in a couple of years, but we didn't want too large of a stockpile which would bottom the prices and bankrupt all of the farmers.
The only answer I know of is algae. Much more production/land ratio. Squeeze oil for biodeisel then use silage for ethanol production or fertilizer.
patrick, ville platte , louisiana
Has anyone stopped to think about how lucky we are that are food is still cheaper than anyone elses in the world? We are blessed as Americans to spend the lowest percentage of our income on food. Maybe if the price goes up a little bit we will start to appreciate it a little more.
EC, Columbus, OH
Well-here we go again--with Butanol out there-better than ethanol and cheaper to process--it looks like the working little people are again paying for the rich to get richer--the politicans have their hands in the pocket of the working class--I guess the senators of the corn growing states want their share of the wealth and to hell with the working class--they can just work harder to eat and live--but some where we are going to quit being the "financial supporter of the U.S."and go on welfare along with all the other "people".
Lacy, Greensboro,
"Is anyone calling for confiscating the obscene profits of these unscroupulous farmers?"
karl, white mtn. lake, AZ
Being a farmer I don't sell corn at four dollars a bushel. The industrial machine is getting the obscene profits.
Sam , Gerald, USA?MO
"confiscating the obscene profits of these unscroupulous farmers"
Seriously. Why don't you move to North Korea, I hear they have a nice little communist paradise going on there. I'm a hog farmer, and I run an operating loan most of the time, so if that's an "obscene profit" I'd hate to be just making "regular profit".
Wierenga, barrhead , Alberta Canada
distilars grain is a by product of ethanol production that is a great source of livestock/poultry feed. with any new paradigm shift it will take some time to sort thru but a positive outcome is possible.
marcia, lansing, usa
This is a giant Con Job..Ethanol based fuel contains about 70 % of the heat value (BTU'S) of petroleum based fuels. The only reason this is used as a fuel is the corrupt US Senate and House,,,Sen Charles Grassley, et al, who rape the taxpayer with a 51 cent a gallon subsidy. Next time your readers see an Archer-Daniels Midland ad touting this garbage fuel, think of the billions of dollars these crooks are lining their pockets with. The reasons Pres Bush should be impeached is over this disgraceful waste of taxpayer money. Final note,,, what are we going to do with all the Formaldehyde that is going to produce as a gas from the burning of this toxic brew. Will the cost of embalming bodyies go down and wreck the funeral Industry?
Robert Granville Lee, Bloomfield Hills, Michigan. USA
very nice 2 see so many intelligent comments - we do not need to eat animal flesh at all! Problem solved - it really is that easy
Christian, Moscow, pa
If corn has hovered around $2 a bushel for the last several years -- at its highest -- and corn is the primary feedgrain used to feed animals, and if feed represents about 70% of the cost of a farmer's production (the feed industry has a profit margin, on average, of less than 5%), and the corn price doubles due to ethanol feedstock demand, then the math is pretty easy. We need to be looking at alternative feedstocks for biofuels and whether tax incentives to ethanol companies and the oil industry are necessary to build this industry or are market distorting in an energy market that needs to be global, not simply domestic.
SteveK, Washington, DC
David, you must be insane likening food production to the holocaust. That is an insult to every Jew in the world.
Jim, Loretto, MN
Solar + Geo Thermal power plants (Thats your base & peak Loads) = Electricity = Electric Vehicles = Cheaper Fuel = Less Noise & Air Pollution +
Carbon Free + Better Heath + Unlimited Supply of Independent Energy.
Did anybody here go to School?
( Don't Tell The Special Interest Groups)
Noel, Mount Isa, Australia
Is anyone calling for confiscating the obscene profits of these unscroupulous farmers?
karl, white mtn. lake, AZ
To Mr. Vance of Lakeport. I'm not familiar with butanol. If true it sounds like an excellent alternative or supplement. Makes me wonder how many other sources of energy are out there that we don't hear about.
Murph, Madisonville, USA/KY
Maybe the days of factory farming living beings by feeding them corn, antibiotics, and growth hormone purely for profit and the benefit for few should be reconsidered--now that it's hitting someone's pocketbook. How about we let lower evolved species live a natural life fit for what they were born into, instead of forcing a painful, confusing experience best likened to a holocaust?
David, Dallas, TX
You don't suppose that BIG Oil has anything to do with surpressing any other sources of energy, do you?
Smitty, Mesa, AZ
This is stupid ethanol is to expensive, so what is the point we don't gain a thing with ethonal except pay more for food and fuel then we also will import more food, then we depend on other countries to feed us then we die! It is all PC crap, just open 5 new oil feilds in Alaska and 6 new rigs off of California and build ten new gasoline plants we would then be self sufficient from these high fuel prices, cost of food goes down, the direction we are going is a looser. liberalism is a mental disorder, and we now are going in a decline of this countries power, we have become lazy stupid and political correct, and that is insanity!!!!!!!!!!
Terence, Carlsbad, USA Ca
If there's one thing Americans can afford to do, it's to eat less. However, I can't help but believe that this is more than a bit convenient. Blaming an inflation in food prices on an ethanol industry which is still trivially small? More like just finding something to blame inflation on. Inflation is the bogeyman of the American economy, if you say its name 3 times, it will appear behind you in a mirror and slit your throat. If the Consumer Price Index says that inflation is up, then the CPI is irrelevant, and the PPI is relevant. If the PPI says that inflation is up, it must be irrelevant, and it must be that cars don't burn enough oil! And why would an eight-foot Wookiee live on Endor?
Roger Briskly, Washington, DC,
Where is butanol in this picture?
Not only do we have virtually limitless sources of the material to make butanol, but we have the microbe to convert cellulose from wood, grass, stalks, etc. into butanol. You can put it in your gas tank right now! It gets 10% more miles/gallon. It can be transported in pipelines, which ethanol cannot. There is enough brush in the state of Texas to supply 1/6th of our cars and it is now wasted! Is anybody at the helm of the good ship America?
Adrian Vance, Lakeport, USA, California
we have beenpaying subsidies to farmers for years to not grow corn. why, now are we having to take the brunt of the cost for them to grow it?
lou, arnold, pa
Artifically enduced price rises, is the result of what happens when any government actions, whether meant to be helpful or not, interfere with the normal ebb and flow of supply and demand.
In England, and Europe, and Japan, [etc] this is the reason why the family auto is not as entrenched as a mainstay of the economy as in the USA, is that confiscatory taxes on Autos and gasoline, have left the common man out of the possiblity of owning and enjoying same, and the sense of well being and freedom that Americans have enjoyed to now. But not for much longer with the Democrats in power and global warming the mantra.
John R Skuce Jr, Garner , NC USA
Using corn as a basis for fuel is moronic. There is no real need for the so-called green fuels, but if the need were real, vast quantities of ethanol could be produced from cultured algae.
James L. Heckman, Pahoa, Hawaii
I believe there is a war on the population in regard to our diets. Reducing or eliminating animal meat from the human diet is a very dangerous idea. The 'green movement' is a fraud and is profiting from it's sick movement to depopulate the Earth of human beings because they view everything (nonhuman) in nature as being more important than your elderly mother or newborn child. Don't believe their uneducated and manipulated propaganda. They have no hope or faith in the concept of a Creator who is in control of Creation. Would you use a Ford car manual to fix a Honda Accord? I've also noticed that while many people are living longer, the mental health of our current generation is deteriorating at an alarming rate, despite all this wonderful so called knowledge of how to live healthier and more fulfilling lives. Depression and anxiety is epidemic yet we still keep promoting going to that gym, taking that pill, and the don't eat this and don't eat that game. Sad way to live.
Eli A., Wilmington, USA/NC
To RH of Houston...may I suggest a tune up! And congrats if you're still driving a metro in Houston traffic and have lived this long to write about it..lol. As to growing the corn. Here in Kentucky we grow plenty and I guess we're lucky with good rainfall as no one that I know, or have observed, irrigates. I agree with a mix of nuclear and electric, but as to you dissing ethanol..I'd much rather my money go to an American farmer than a mideast sheik anyday!! Also, millions of bushels of corn have been shipped, stored, and processed for a number of uses for years. The infrastructure already exists. If it has to expand...thats good..more jobs! If you're an American farmer growing corn then you would know they..the farmers...often have to make a decision as to storing it until the price rises..or sell now at the exisiting price. Perhaps with ethanol demand....he can sell it anytime...and not worry about next years market price! Wow..a farmer with some security! Good move!!!!!!
Murph, Madisonville, USA/KY
Gee, I thought the EU was way ahead of the USA on environmental issues, yet they only have a TARGET of 10% on biofuel while here at home we have 10% mandated by law. What is the current EU percentage and when is the target of 10% supposed to be met?
RE, Wilmington, USA
We are all too fat anyway. Meat production is a very inefficient use of corn, plus some folks tell us meat is bad for our heart. With the high price of corn, our government will save all that money on farm price supports. It will help our balance of trade by reducing our import of oil and the value of our #2 export, food,is now worth a lot more. I don't see a down side!
Darrell Bowman, Redfield, Iowa
My car (Geo Metro) used to get 44 mpg now with 10% ethanol it gests 38mpg. This means I am actually consuming more oil based gasoline than I was before. Not to mention that corn does not spring from the ground as ethanol. There are field preperation, planting, irrigation (requires power), harvesting, shipping, and conversion into ethanol ALL require energy and about 3 to 5 gallons of water to convert the corn to ethanol, not to mention the water needed to grow it. Nuclear power plants and electric cars are the answer, not some politcal game to get the farm vote.
RH, Houston,
The left needs to be careful, pushing the panic button when there is not one, could cause people to starve. When that starts to happen, it could bring the end before the climate could ever achieve that result. People will do whatever it takes to feed their families. Including war.
Jim DeGroff, Memphis, USA/TN.