Quote:
Originally Posted by shovel
Two acres of corn produce ~150-160 bushels of corn worth of food value in the form of DDS/DDG, in addition to the ~860gal of ethanol also produced. This is compared to ~150-160 bushels of corn per acre at straight crop-food value.
|
So, using the data you posted it's easy to see that it takes twice the corn to produce 860 gallons of ethanol while still producing the 150-160 bushels of corn worth food value. Which translates to a need of 1 acre of corn for every 860 gallons of ethanol. In 2010, the ethanol production was 13 billion gallons which comes to 15 million acres of corn. That's a 15 million acre reduction of feed corn supply. So based on 2010 prices, that's $11,295,000,000 worth of corn for ethanol production (just the portion that's not replaced with DDS/DGS). It does effect the cost of feed corn as well as corn exports, etc. "There is no such thing as a free lunch"
Price per Bushel of Corn:
Year $/Bshl
2000 1.85
2001 1.97
2002 2.32
2003 2.42
2004 2.06
2005 2.00
2006 3.04
2007 4.20
2008 4.06
2009 3.55
2010 5.30
As far as the other corn market demands (weather, feed, etc) that you say contribute to the increase in corn prices; those demands are the reason that the corn market exists. That's where my problem lie's, why take a product that already has high demand and use it in an attempt to solve a demand problem in completely different market. Thus giving motivation to speculators. It's basic economics. This ethanol craze is not being done in for the best interest of the public; it's being done for special interests, and some are so blinded by their cause that they can't see the forest for the trees.
I'm all for alternative fuel research & production as long as it's done with sound economic principals and in the best interest of the public. I'm also all for reducing emissions and conserving this wonderful planet. However, I'm not a blind sheep and don't often jump on buses; and I most definitely don't take the attitude that so many seem to have....save the planet and to hell with the people on it.
If ethanol is so great, stick it in a tank and allow those who have the proper equipment voluntarily choose to run it. Don't mandate that everyone use it regardless of whether their equipment is designed for it or not.....might as well make us all replace one quart of engine oil with corn oil.