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Economic impact of corn ethanol[edit]
The use of ethanol for fuel has had a damaging impact on food markets, especially in poorer countries. In the United States, ethanol is mostly made from yellow corn, and as the market boomed for alternative fuel, yellow corn went up in price. Many farmers saw the potential to make more money, and switched from white corn to yellow corn. White corn is the main ingredient of tortillas in Mexico, and as the supply dropped, the price doubled, making the base of most Mexican foods unaffordable.[20] Many people[who?] see this as unacceptable, and want no overlap between food crops and fuel crops.[21][22] Others[who?] point out that the earth is thought to be able to support double the current human population, and press that the resources available, such as unused farmable land, should be better handled.[23]
The Renewable Fuels Association (RFA), the ethanol industry's lobby group, claims that ethanol production does increase the price of corn by increasing demand. RFA claims that ethanol production has positive economic effect for US farmers, but it does not elaborate on the effect for other populations where field corn is part of the staple diet. An RFA lobby document states that "In a January 2007 statement, the USDA Chief Economist stated that farm program payments were expected to be reduced by some $6 billion due to the higher value of a bushel of corn.[24]
Corn production in 2009 reached over 13.2 billion bushels, and a per acre yield jumped to over 165 bushels per acre.[25]
On March 9, 2011, senator Dianne Feinstein from California introduced a bill that repealed the corn subsidies in the U.S. She is quoted, telling Congress "Ethanol is the only industry that benefits from a triple crown of government intervention: its use is mandated by law, it is protected by tariffs, and companies are paid by the federal government to use it. It's time we end this practice once and for all".[26]
http://en.wikipedia.org/wiki/Corn_ethanol
The use of ethanol for fuel has had a damaging impact on food markets, especially in poorer countries. In the United States, ethanol is mostly made from yellow corn, and as the market boomed for alternative fuel, yellow corn went up in price. Many farmers saw the potential to make more money, and switched from white corn to yellow corn. White corn is the main ingredient of tortillas in Mexico, and as the supply dropped, the price doubled, making the base of most Mexican foods unaffordable.[20] Many people[who?] see this as unacceptable, and want no overlap between food crops and fuel crops.[21][22] Others[who?] point out that the earth is thought to be able to support double the current human population, and press that the resources available, such as unused farmable land, should be better handled.[23]
The Renewable Fuels Association (RFA), the ethanol industry's lobby group, claims that ethanol production does increase the price of corn by increasing demand. RFA claims that ethanol production has positive economic effect for US farmers, but it does not elaborate on the effect for other populations where field corn is part of the staple diet. An RFA lobby document states that "In a January 2007 statement, the USDA Chief Economist stated that farm program payments were expected to be reduced by some $6 billion due to the higher value of a bushel of corn.[24]
Corn production in 2009 reached over 13.2 billion bushels, and a per acre yield jumped to over 165 bushels per acre.[25]
On March 9, 2011, senator Dianne Feinstein from California introduced a bill that repealed the corn subsidies in the U.S. She is quoted, telling Congress "Ethanol is the only industry that benefits from a triple crown of government intervention: its use is mandated by law, it is protected by tariffs, and companies are paid by the federal government to use it. It's time we end this practice once and for all".[26]
http://en.wikipedia.org/wiki/Corn_ethanol
