ETHANOL VS FOOD

Just one of the many reasons anybody who thinks we can grow our way out of our energy needs is going the wrong way.

Ethanol And Food Costs
Krishnadev Calamur, May 15, 2007 (UPI)

WHO
US corn farmers, US consumers, US agricultural scientists and economist

WHAT
Increased ethanol demand = increased food prices.

WHEN
- 2006: US produced 5.9 billion gallons; 2007: US projected to produce 9.3 billion gallons
- 2006 corn crop: $6.33 billion; 2007 corn crop (prjected): $42 billion
- 1997: 5% of corn crop to ethanol; 2005: 14%; 2006: 20%; 2007: 27%

WHERE
In the US farm belt.

WHY
- Main source of ethanol as fuel additive: corn. As a vital fuel additive: 118 plants in operation, more being built.
- Unused land is going into corn for ethanol, driving other crop prices up.
- Because corn is a major feedstock, the price of poultry, beef products, eggs and dairy go up.
- Efforts to develop cellulosic ethanol from switchgrass and other non-food crops are five years away due to unresolved complications in cellulosic ethanol refining.

QUOTES
- Peter Morici, professor, Robert H. Smith School of Business/ University of Maryland, College Park: "The ethanol program is a high-cost, low-growth solution to dependence on foreign oil…It appeals to farm state senators, but it is a very costly and inefficient approach that raises food prices to create expensive gasoline."
- USDA chief economist Keith Collins: "As a result of this, we have seen higher agricultural commodity prices across the board…There are going to be costs and benefits ... One of the things we expect to see is slightly higher food prices…"
- Ray Cesca, president, World Agricultural Forum: "The real debate is whether it is possible for nations to develop a strong energy policy without affecting food prices…"