Less Corn = Higher Ethanol Prices. And The Sun Will Rise in the East Tomorrow.

Glenn Swanson
by Glenn Swanson
less corn higher ethanol prices and the sun will rise in the east tomorrow

Higher corn prices could soon be passed on to those filling their cars up with ethanol, says CNNMoney. The increasing cost of growing corn, along with favorable prices for other crops such as soybeans could fuel a decrease in corn production. Even though ethanol is heavily subsidized, it has contributed to the rise in corn prices, which has hurt poultry, beef and pork companies who use corn to feed their animals. But a decrease in corn production would also be bad news for the corn-juice industry. According to the Renewable Fuels Association, the number of ethanol plants has increased from 50 in 1999, to 134 today, with more plants on the drawing board. Given that, on average, a 100m gallon-per-year ethanol plant consumes about 33 million bushels of corn, more ethanol plants and less corn could spell trouble ahead. The decreased supply could drive corn prices even higher, which would offset any possible "advantages" corn-based ethanol was supposed to offer.

Join the conversation
4 of 6 comments
  • Landcrusher Landcrusher on Mar 31, 2008

    I just hope we can go back to getting Cola made with sugar cane instead of corn syrup. Then we would at least get a silver lining out of this fiasco.

  • Kph Kph on Mar 31, 2008

    There are existing techniques to make ethanol from so many feedstocks other than corn. Why the government would choose a staple food crop for its ethanol subsidies is beyond me. Enough of this already. Anyone know who in Congress we should spam? Or if this is on their radar at all?

  • John R John R on Mar 31, 2008
    @kph I think we have the farmers to thank for the focus on corn.

  • Grinchsmate Grinchsmate on Mar 31, 2008

    as a weat farmers son in australia who has absolutly no intrest in the nvironment can i just say please please please please keep buring your corn its doing wonders for our grain prices