By: Jeff Nelson
Use more corn. Make more ethanol. Import less oil. It seems like a simple formula for decreasing United States’ dependence on foreign oil. But what is the real price for using our corn crop to quench the United States’ thirst for oil? Many people that depend on food produced in the United States will have to tighten their belts.
Currently the U.S. produces nearly half of the corn produced in all of the world and accounts for over half, 60-70 percent, of total world corn exports. Currently only about 14 percent of the corn in the U.S. is used to produce ethanol, but that ethanol only accounts for about 3 percent of the motor vehicle fuel in the U.S. What does all of that mean you may ask?
Well with the U.S. focusing on using ethanol for its fuel alternative it is driving the demand for corn up increasing the price that corn is bought and sold for. Now, I am no economist but everyone will feel the effects of that, not just people in the U.S. Higher corn prices means more farmers producing more corn and less of other staple crops and grains like wheat and soybeans, so prices for those will increase. Higher corn prices will increase the cost to feed livestock driving up the prices for meat, especially chicken and pork.
The effects have already been felt inside and outside the U.S. Americans are seeing prices inflate for every thing from pork to Coca-Cola. Any product that in some way uses corn sweeteners or starches is expected to increase in price with less corn available to use for food processing. Mexican citizens have also been hit by the increase costs. The President Felipe Calderon even complained during the U.S.-Brazil ethanol talks about the rising prices because it is hurting those in poverty who rely on corn tortillas as a dietary staple.
Now the U.S. claims that increased ethanol production is necessary for environmental and national security reasons. But is ethanol at this stage of development really safer for the environment? That is like saying smokeless tobacco products are a safe alternative to cigarettes. Right now ethanol takes more energy to produce than gasoline. When used in the car it only produces slightly less emissions than gasoline, but gets worse mileage per gallon. As for national security reasons for switching to ethanol, yes it is good to reduce U.S. dependence on foreign oil, but does it make sense to put energy dependence on unpredictable weather. You cannot predict a terrorist attack on an oil pipeline or tanker, but you also cannot control the weather.
Increased production of ethanol from world food supplies will end up creating food shortages and more starving people all over the world. Whether they are starving because they cannot afford the food any more or because there is not enough food, it does not make a difference. Starving is starving.
The shortsighted attempt to develop alternative fuel sources will allow those problems to occur yet allow those responsible to hide behind the veil of the "market." The U.S. needs to act responsible for once in this situation. Prevent hunger instead of causing it. Producing ethanol as an alternative fuel source is not bad in general. In fact, I think it is a good thing that alternative fuel sources are finally being used. What is bad here is that this fuel source should have been developed and researched 20 years ago. The resources for development of alternative fuel sources is being primarily focused on bio-fuels and not in other areas.
Meanwhile people will starve while it takes another 20 years to figure out that using our food for fuel was not really worth keeping the cost of gas in the U.S. low. Investment in other fuel sources needs to be made to develop renewable energy resources like solar power or hydrogen cell technology. We cannot and do not need to eat that to survive. The U.S. should not trade in people's food for fuel.
See: USDA Report: "Ethanol Expansion in the United States: How will the Agriculture Sector Adjust?" May 2007, http://www.ers.usda.gov/Publications/FDS/2007/05May/FDS07D01/fds07D01.pdf




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