Ethanol, Food Prices and Oil

After 30 years of alternative fuels, fusion energy and other follies we have ethanol for not less than 5$ per gallon.

The diversion of corn from food into fuels has caused a world wide food shortage.

This was a lousy idea. Even the NYT agrees.

http://rycksrationalizations.blogtownhall.com/2008/04/07/th e_leftists_bawl_for_grain-based_fuels_and_the_prices_rise_a nd_they_bawl_about_the_prices.thtml
The Leftists Bawl for Grain-Based Fuels and the Prices Rise and they Bawl About the Prices.

Gas rationing and starvation are next

rycK

Ethanol trades on the CBOT for under $2.50 per gallon. And less on the spot market. Where did you get $5?

What solutions do you offer?

http://www.cbot.com/

I'm glad the research is being done and I wish you well in the operation of your company. We have a fundamental disagreement, though. American farmers grow animal feed/ethanol corn because it pays better. That means they're growing less table food corn.

We are constantly asked to look to Brazil for an ethanol model that works. That is ridiculous. Sugar is a condiment. Corn is a staple.

There is no question that research and production of ethanol will lead to breakthroughs, but let's not kid ourselves. It exists because of subsidies, high oil prices and a willingness to remove food from the table of the poorest of the poor.

Thanks for the comments.

I agree with your point marginally. The biggest losers of ethanol’s corn displacement will not be staple foods. I do not think a good argument can be made that displacing sweet corn with dent corn hurts the poor. The acres lost to corn ethanol are Soybean acres, which is refined into non-staple foods as well:

http://www.asaim-europe.org/SoyInfo/uses.htm

Also, many people mention how successful Brazil is and how they do not use “food” type feedstock for their ethanol. But if Brazil were not planting Sugarcane they would be planting Soybeans…