According to the US Department of Agriculture, farmers are anxious to cash in on the demand for ethanol. So much so, that soy and cotton will be taking a back seat to corn-growing to the tune of 13.5 billion bushels.
The food vs. fuel debate among growers has intensified because the US Government has legislated that ethanol be used as a “blender with conventional petrol,†causing a surge in demand for the product.
It is expected that Brazilian and Argentine growers will produce more soy to off-set the void created by US farmers. The trade-off is the US will pay more for animal feed made from imported soy.
Over the last three years, I have noticed a rise in the price of corn at my local roadside market during harvest season. In 2004, ears of sweet corn were priced at $2.50 a dozen; in 2005 the price went up to $3.00; last summer corn hit an all-time high of $3.75 a dozen. This year, I'm ordering corn seeds out of the Burpee Seed catalog, till in some cow dung, grow it myself, and have it for 50 cents a dozen, with a little left over for moonshine.
Photo Credt: judestoryteller WebShots
Demand for Ethanol Stimulates Food Vs. Fuel Debate Among US Farmers
Demand For Ethanol Stimulates Food Vs. Fuel Debate Among US Farmers
Trend Themes
1. Increase in Ethanol Demand - The demand for ethanol is creating an opportunity for increased production and development in the ethanol industry.
2. Food Vs. Fuel Debate - The ongoing debate between using crops for food or fuel is raising questions and creating potential for disruptive innovation in agriculture and energy sectors.
3. Rising Corn Prices - The steady increase in corn prices is demonstrating a need for alternative solutions and technologies in corn production and distribution.
Industry Implications
1. Ethanol Industry - The growing demand for ethanol presents a disruption opportunity for companies in the ethanol production, distribution, and technology sectors.
2. Agriculture Industry - The food vs. fuel debate is calling for innovative approaches in crop production, farming techniques, and sustainable agriculture practices.
3. Energy Industry - The increasing demand for ethanol as a fuel source highlights the need for advancements in renewable energy technologies and infrastructure.