How ethanol production wastes corn.
FEELING the need for an example of government policy run amok? Look no further than the box of cornflakes on your kitchen shelf. In its myriad corn-related interventions, Washington has managed simultaneously to help drive up food prices and add tens of billions of dollars to the deficit, while arguably increasing energy use and harming the environment.
Even in a crowd of rising food and commodity costs, corn stands out, its price having doubled in less than a year to a record $7.87 per bushel in early June. Booming global demand has overtaken stagnant supply.
But rather than ameliorate the problem, the government has exacerbated it, reducing food supply to a hungry world. Thanks to Washington, 4 of every 10 ears of corn grown in America — the source of 40 percent of the world’s production — are shunted into ethanol, a gasoline substitute that imperceptibly nicks our energy problem. Larded onto that are $11 billion a year of government subsidies to the corn complex.
Corn is hardly some minor agricultural product for breakfast cereal. It’s America’s largest crop, dwarfing wheat and soybeans. A small portion of production goes for human consumption; about 40 percent feeds cows, pigs, turkeys and chickens. Diverting 40 percent to ethanol has disagreeable consequences for food. In just a year, the price of bacon has soared by 24 percent.
To some, the contours of the ethanol story may be familiar. Almost since Iowa — our biggest corn-producing state — grabbed the lead position in the presidential sweepstakes four decades ago, support for the biofuel has been nearly a prerequisite for politicians seeking the presidency.
Those hopefuls have seen no need for a foolish consistency. John McCain and John Kerry were against ethanol subsidies, then as candidates were for them. Having lost the presidency, Mr. McCain is now against them again. Al Gore was for ethanol before he was against it. This time, one hopeful is experimenting with counter-programming: as governor of corn-producing Minnesota, Tim Pawlenty pushed for subsidies before he embraced a “straight talk” strategy.
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I was just about to post this. Stupid farmers.
Corn down this past week. I didn’t trade it, lacked the conviction, an iota of regret on that.
The whole energy sector has been hood winked America. Solar and wind farms across the midwest and southwest plus electric cars would reduce carbon foot print and obviate (there’s my $50 word for the weekend), or at least substantially reduce, current petroleum consumption (as tech. innovates for many of larger equip. tractors, cranes, etc.).
At lease Germany’s Sieman’s still relies on their analytic and technical know how to plan our future, see here: http://fb.me/OMSKEzkY
But Americans really don’t like change, I reluctantly accepted this a long time ago.
Pick some mascot to belong to, and shoot the breeze until the cerebrum’s out of order.
On the positive side, ever day alive is a good one.