Comments on: Corn Ethanol: The Fuel to Higher Food Prices

By: chemicallygreen.com

chemicallygreen.com — Tue, 17 Jun 2008 14:20:46 +0000

@Disbelief: Appreciate your comments. I have heard this argument many times, but if you are growing ethanol corn 100%, then what happens to the supply of corn that is consumed by humans and fed to animals as feed? What about soy beans and wheat? If farmers are planting ethanol corn, who is going to take up the slack for the food products we need?
Are you paying less for your food this year? Do you think food prices are going to go down as oil prices rise?
I guess our brilliant USDA will make a statement next week about food prices only slightly effected as the 2008 corn and soy bean crops in the mid-west have been flooded and mostly destroyed.

* A World Bank study estimated that corn prices “rose by over 60% from 2005-07, largely because of the U.S. ethanol program” combined with market forces.
* An Iowa State University analysis of Chicago Board of Trade data found that implied volatility of corn prices had reached 35% by February 2008, up from 32% in 2007, nearly 29% in 2006 and 22% from 1997 to 2005. The gains were attributed in the Iowa State study to “increased demand for corn from the ethanol industry.”
* The International Monetary Fund estimated recently that the shift of crops out of the food supply to produce biofuels accounted for almost half the recent increases in global food prices. The IMF estimates that global food prices rose 43% in the 12 months ending in March 2008.
Our government chose the wrong white horse to ride using corn ethanol as an alternative fuel source. Disbelief, take a look at our current draft about “Flooding and HIgh Corn Prices” and check out the link about corn ethanol that I recommend everyone read. The USDA, like the rest of our government is in a black hole. After all the flooding with corn selling for over $7.00 per bushel (all time high), will the USDA say food prices have only been slightly affected? I will be in total disbelief. What about you?

By: Disbelief

Disbelief — Tue, 17 Jun 2008 02:42:50 +0000

From a blog on this website: “and yet the U.S.D.A. says food prices have only been affected slightly by corn ethanol and bio-fuels.” The corn that is used for ethanol is different than that used to feed human beings.

By: chemicallygreen.com

chemicallygreen.com — Sun, 04 May 2008 22:46:31 +0000

@Donna Gilliam: Thanks for your comments and question. The reason the farmers have gone to growing all corn for ethanol is the subsidites being paid for corn ethanol. It is simple economics. Growing corn pays more to the farmers than soybeans and wheat crops. With corn prices going over $5 and 6.00 per bushel, the other crops have been delegated to the back of the pack. The subsidities for corn needs to be dropped. The U.S. government in all their wisdom did not see what would happen to food prices when they signed off on paying kickbacks for corn ethanol.

By: donna gilliam

donna gilliam — Fri, 02 May 2008 01:35:08 +0000

I am probably going to show my ignorance on this subject by asking this question, but here goes: Why can’t the farmers be paid more to produce soybeans and wheat, and would this help?

By: chemicallygreen.com

chemicallygreen.com — Fri, 25 Apr 2008 16:13:36 +0000

@Wayne Smallman: thnaks for the comments.
You are correct. Unfortunately, people are suffering due to grain shortages and countries hoarding their food supplies. Corn ethanol has been pushed on the American public for many reasons money and greed, but not because it can help out lowering the price of gasoline.

By: Corn Ethanol Creating Famine?

Corn Ethanol Creating Famine? — Wed, 23 Apr 2008 23:36:48 +0000

[…] Read more Chemically Green » Corn Ethanol: The Fuel to Higher Food Prices […]

By: Wayne Smallman

Wayne Smallman — Wed, 23 Apr 2008 13:58:41 +0000

To some extent, bio-fuels are like electric cars; they’re a false economy.

For now, that’s true. But I’ve been reading good things about the refinement process (genetically engineered bacteria) as well as GM crops, which is contentious in its own right.

What’s stressing bio-fuel as a viable fuel source is that we’re leaving it pretty late. We should have been looking at such things 20 years ago, so that transition from fossil to bio would have been more smooth.

In time, we’ll get this right, but for now, it’s not really us in Europe and the US that’s going to suffer, but those that are already suffering, such as Africa…