Ethanol Gold Rush Carries Costs

Thanks to a host of generous ethanol subsidies, we have seen a stampede of American farmers planting corn in place of other crops to cash in on the ethanol craze, says USA Today.

For non-farmers, though, the consequences are less cheery. They get to pay for the corn twice — once through taxes to fund a 51-cent-per-gallon federal subsidy, then again at the dinner table because as more corn goes for ethanol, less is available for food and feed, boosting prices.

At a time when global agricultural supplies are at their tightest levels in decades — and likely to get tighter as the result of rising living standards in the developing world — America is taking vast amounts of farmland out of food production.

Consider:

Last year, about 4.9 billion gallons of ethanol were produced.
Within a couple of years, that number is projected to rise to about 12 billion gallons, thanks to a building boom in ethanol plants.
A proposal in Congress would mandate an increase in ethanol production to 36 billion gallons within 15 years.
That amount of ethanol, using current technologies, would consume virtually America´s entire corn crop.

Even assuming breakthroughs in so-called cellulosic ethanol — which is made from grasses, wood chips and such, and now costs much more than corn-derived ethanol — world food supplies would be stressed. The benefit from all of this is far less clear than ethanol´s newly enriched boosters would have you believe, says USA Today.

In its first major report on bioenergy, the United Nations concluded that while ethanol and other biofuels can help reduce global warming and create jobs for the rural poor, the benefits may be offset by other environmental problems and higher food prices.

Source: Editorial, “Our view on alternative energy: Ethanol gold rush carries costs to your table,” USA Today, May 9, 2007.

Animal Health Black Ink Book Reviews Caren Cowan Cowboy Heroes Estrays Farm Bureau Minute Global Economy In Memoriam Jingle Jangle Lee Pitts N.M. Federal Lands News N.M. Livestock Board NMCGA Presidents Letter Obituaries Old Times & Old Timers On the Edge of Common Sense Riding Herd Scatterin' the Drive To The Point View From the Backside/td>	Ethanol Gold Rush Carries Costs Ethanol Gold Rush Carries Costs Thanks to a host of generous ethanol subsidies, we have seen a stampede of American farmers planting corn in place of other crops to cash in on the ethanol craze, says USA Today. For non-farmers, though, the consequences are less cheery. They get to pay for the corn twice — once through taxes to fund a 51-cent-per-gallon federal subsidy, then again at the dinner table because as more corn goes for ethanol, less is available for food and feed, boosting prices. At a time when global agricultural supplies are at their tightest levels in decades — and likely to get tighter as the result of rising living standards in the developing world — America is taking vast amounts of farmland out of food production. Consider: Last year, about 4.9 billion gallons of ethanol were produced. Within a couple of years, that number is projected to rise to about 12 billion gallons, thanks to a building boom in ethanol plants. A proposal in Congress would mandate an increase in ethanol production to 36 billion gallons within 15 years. That amount of ethanol, using current technologies, would consume virtually America´s entire corn crop. Even assuming breakthroughs in so-called cellulosic ethanol — which is made from grasses, wood chips and such, and now costs much more than corn-derived ethanol — world food supplies would be stressed. The benefit from all of this is far less clear than ethanol´s newly enriched boosters would have you believe, says USA Today. In its first major report on bioenergy, the United Nations concluded that while ethanol and other biofuels can help reduce global warming and create jobs for the rural poor, the benefits may be offset by other environmental problems and higher food prices. Source: Editorial, “Our view on alternative energy: Ethanol gold rush carries costs to your table,” USA Today, May 9, 2007.	Categories Aggie Notes Beef Checkoff Black Ink Book Reviews Climate Change COOL Cowboy Heroes Cuts From the Edit Room Floor Endangered Species Environment Estrays Factory Farming Farm Bureau Minute General Global Economy In Memoriam Jingle Jangle Lee Pitts Letters to the Editor Marketing Our Products Merger Nat'l Animal ID System NM Federal Lands News NM Livestock Board NMCGA President's Letter Obituaries Old Times & Old Timers On the Edge of Common Sense People Press Release Press Releases Price Reporting Property Rights Riding Herd Scatterin' the Drive Strategic Alliance To The Point View From the Backside
Office: 505/243-9515 • Fax: 505/998-6236 • NEW MEXICO STOCKMAN \| P.O. Box 7127, Albuquerque, NM 87194 LIVESTOCK MARKET DIGEST \| P.O. Box 7458, Albuquerque, NM 87194 COPYRIGHT ©2010-2015, RAINY DAY, INC. All rights reserved. Redistribution or commercial use of any editorial or images from this website is prohibited without express written permission from the editor. Reproduction in whole or in part without the express written permission of the editor is prohibited.

Ethanol Gold Rush Carries Costs

Categories