GoodFuels

Impact of ethanol on farmers

Via Daily Finance:

In an interview with farmer Brent Porteus, past president of the Ohio Corn Growers Association, Daily Finance discusses the corn market and “prospects for the future”.

When asked how ethanol impacted his farming operation in the past year, Porteus has this to say:

“The impact of ethanol is not as great as many people believe. It’s still only a part of the market — last year, three billion bushels. Sixty percent of our corn production is used to feed livestock, while over two billion bushes went to export last year, up 6 percent. Last summer, China was buying commodities, since they were a bargain due to the weak dollar. The spike in grain prices occurred when oil prices went up and the stock market declined, and money looking for a safe haven flowed into commodities. This ‘perfect storm’ was what drove prices up steeply for a couple of months. It wasn’t a corn problem; it was an energy problem.”

As for the food vs fuel debate, he believes that this country’s farmers will be able to renewable fuel and feed the country at the same time:

Porteus points to the dramatic increase in our nation’s yield per acre over the past 30 years. In 1978, the U.S. corn harvest was about 6.3 billion bushels; in 2008, 12.1 billion. He believes that, with new planting technology and improvements in the corn stock, farmers will be able to increase their yields to serve the ethanol industry without driving up food prices. Also, as the USDA points out, only 19 percent of our food cost comes from the cost of grains and seed oils.

Interesting interview. Read the whole thing here.

Photo courtesy of rsgreen89.