SarcasticDwarf
Diamond Member
- Jun 8, 2001
- 9,574
- 2
- 76
Originally posted by: nobodyknows
Originally posted by: SarcasticDwarf
Originally posted by: CADsortaGUY
There may be better crops but you are obviously misinformed if you think that ethanol is "barely" energy positive. The corn used in E production accounts for a tiny part of our total corn production so attempts to claim it is ruining water tables or is causing higher food prices are misinformation at best.
Uh, no. I wrote a regional study on ethanol a couple of years ago. Significant percentages (over 15%) of the corn crop goes to ethanol, but it depends entirely on the area. In parts of the country with a lot of ethanol facilities it is a much greater impact. (sorry, don't remember numbers off the top of my head.) The larger issues it has raised are with how it messes with the crop rotation cycle. The attempt by farmers to cash in on the ethanol boom and predict markets/building of facilities really messed with production of other crops the last ~five years.
It has also caused disturbances in the livestock markets are more corn has been diverted (increasing prices). The counter to this by the ethanol industry is that ethanol production creates DDG, but distiller grains can only be used as small parts of livestock intake (though varies a lot with the particular animal).
Oh, I should also add that ethanol takes massive amounts of natural gas to create (which let me tell ya makes it a REAL PITA to site them). I should also note that I don't have much of a problem with blending ethanol for just the midwest and maybe west (more due to the location of the refineries where blending takes place).
So yes, it IS increasing prices at least in the short term.
What increased prices was the cost of oil.
That was part of it, but not all. With everything being connected it is ridiculous to claim any one thing was entirely responsible. Let me give some examples from Wisconsin (which has lots of Ethanol products along with a huge amount of cattle): Dairy Guy A used to get his corn feed from Farmer A for X. Farmer A was overall the cheapest guy to get it from when considering the direct cost, reliability, and distance needed to travel to obtain the feed. Now Farmer A is selling his entire corn crop to the new Facility built nearby. He likes it because they provide price guarantees and long term contracts. Now Dairy Guy A must travel much further and pay a higher direct cost to obtain the feed.
It is things like that which are affecting prices. Other factors were the increasing cost of oil, increasing cost of rail transportation (which was partially caused by ethanol), lousy winters this and last year, massive plantings of corn and soybeans at the expense of other crops, etc, etc.
