I have been saying that food prices will go up this year and we have only seen the beginning. I am not being a pessimistic person, but American citizens have to wake up to what ethanol production is doing to our food prices.We are not looking at the old saying: Pay me now or pay me later but we are paying dearly now and we will pay even more dearly later. Biofuels will continue to cause higher food prices.
What is the value of diverting food crops for fuel? That was the question asked when the livestock and grocery lobby vehemently opposed a U.S. energy bill last fall and said that their costs will continue to escalate because of the heavy support for corn ethanol in Congress.
A fifth of the nation’s corn crop is now used to brew ethanol for motor fuel, and as farmers have planted more corn, they have cut acreage of other crops, particularly soybeans. End result cooking oil shortage and wheat shortages.
Corn prices are costing the ethanol producers, who are struggling to make every penny they can, as corn’s record-setting price increases outpaces the price of ethanol, currently at around $2.50 a gallon.. Also, with oil prices hovering around $115.00/barrel, the end result can only mean that ethanol prices will increase. How will this offset the cost of gasoline as ethanol was intended to do? Tell me how this will happen.
Gee, even the ethanol producers will continue to lose money if corn prices remain high or go higher. Since the government pays the kickback to the producers, the American consumer will continue to pay through the nose on all retail markets. The small upstart ethanol producers will be hammered and only the mega producers like ADM will survive the higher costs. Construction of new ethanol producing plants came to a screeching halt at the end of 2007.
What is happening to corn prices? If corn prices go over $5.00/bushel, then the case for corn ethanol is not a viable alternate fuel source. Corn supplies are tight and will get tighter as the year progresses. Corn prices have risen about 30% already this year as corn stockpiles are being deleted and the pressure for more grain tonnage continues. Due to these factors, ethanol prices will continue to rise. Farmers are planting less corn this year. Why are the farmers planting less corn this year? Just how much is a farmer making when you compare his income with ADM (the largest ethanol producer in the U.S.)?
The making of corn ethanol was supposed to help us with our fuel woes, but this has only exposed the environment and our country to other serious issues that have to be addressed. Are we going to eat or produce a subsidized fuel that will only make the situation worse over the long haul? I am totally committed to saving the planet, but at what cost? Folks, this is really happening. The subsidies must be deleted from the production of corn ethanol. Ethanol must stand the test of time to prove its ability to be a sustainable alternative fuel.