When an agricultural shift in production causes farmers to abandon crops for human consumption to grow crops for energy consumption the markets are thrown out of balance. There is only so much agricultural land for crops. If that land is now used to produce grains, soybeans and switch grass for ethanol, who's growing wheat? Who's producing corn for the myriad of fructose syrups and solids (not that they're healthy) that are in most all of the products that fill our cupboards and fridge's? Who's planting cotton?
Wheat is at an all time high. Great for farmers and the commodity exchange brokers ; bad for Moms across the globe and countries that rely on the generosity of prosperous nations that give these grains to help with famine. Corn-feed for chickens, hogs, farm raised fish and yes even cows has put the burden on household economics. If it is not the direct cost increase of consumer corn, soybean and livestock it is the indirect cost of $100+ barrels of oil that are unexplainably exorbitant to create a viable market for ethanol based fuel (which is not cheap to produce) and thus the race to rip out lower profit commodities to plant more lucrative crops. This then creates a shortage of wheat and consumer corn crops that through supply and demand fosters a premium for what is available.
As the illustration (above) suggests it is not better for the environment in fact studies suggest that rapeseed which the EU wants to use in biodiesel produces copious amounts nitrous oxide more harmful than CO2 gases from fossil fuel. Creating ethanol based fuels does stimulate an economy with a new industry and that creates jobs; but the cost of living is impacted so greatly that alternative energy not alternative fuel is a better solution.
Looking for a better way,
Bycha Buxton
Comments
very insightful. thanks.