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"America is easily the world's largest maize exporter—and it now uses more of its maize crop for ethanol than it sells abroad." http://www.economist.com/displa

"America is easily the world's largest maize exporter—and it now uses more of its maize crop for ethanol than it sells abroad." http://www.economist.com/displaystory.cfm?story_id=10250420 http://www.economist.com/displaystory.cfm?story_id=10250420

yters 19y ago
While the article may contradict his point, your cite doesn't.
- sdurkin 19y ago
  "Because this change in diet has been slow and incremental, it cannot explain the dramatic price movements of the past year. The second change can: the rampant demand for ethanol as fuel for American cars. In 2000 around 15m tonnes of America's maize crop was turned into ethanol; this year the quantity is likely to be around 85m tonnes. Ethanol is the dominant reason for this year's increase in grain prices. It accounts for the rise in the price of maize because the federal government has in practice waded into the market to mop up about one-third of America's corn harvest. A big expansion of the ethanol programme in 2005 explains why maize prices started rising in the first place."
  - yters 19y ago
    But maize is only one grain, and I didn't see it mentioned in the article.
Goladus 19y ago
"Producers plan to plant 86 million acres of corn this year. While 7.6 million acres less than 2007, this would still be the second-largest area since 1949." Furthermore, Soybean and Wheat acreage are both increasing. http://www.nass.usda.gov/Newsroom/2008/03_31_2008.asp http://www.nass.usda.gov/Newsroom/2008/03_31_2008.asp Even if we guess at 150 bushels/acre for 2008, with 86 million acres that's 12.9 billion bushels or 322-328 million tons (not sure which version of the ton the article is using). So 25% of the corn crop predicted to be diverted to ethanol. While this is a large increase since 2004, this is still just a quarter of a third of the total of Corn, Wheat, Soy, and Cotton crop. That's like 9%. The article points out that this 9% is more than their rough estimate of the shortage, but that's like blaming Florida for the outcome of the entire US election or for blaming a loss on the basketball player who misses a free throw in the final seconds of a close game. So the US magically switches off its ethanol production-- what then? Demand increases by that same level again and this time there's no ethanol scapegoat.

yters 19y ago

While the article may contradict his point, your cite doesn't.

sdurkin 19y ago
"Because this change in diet has been slow and incremental, it cannot explain the dramatic price movements of the past year. The second change can: the rampant demand for ethanol as fuel for American cars. In 2000 around 15m tonnes of America's maize crop was turned into ethanol; this year the quantity is likely to be around 85m tonnes. Ethanol is the dominant reason for this year's increase in grain prices. It accounts for the rise in the price of maize because the federal government has in practice waded into the market to mop up about one-third of America's corn harvest. A big expansion of the ethanol programme in 2005 explains why maize prices started rising in the first place."
- yters 19y ago
  But maize is only one grain, and I didn't see it mentioned in the article.

Goladus 19y ago

"Producers plan to plant 86 million acres of corn this year. While 7.6 million acres less than 2007, this would still be the second-largest area since 1949." Furthermore, Soybean and Wheat acreage are both increasing. http://www.nass.usda.gov/Newsroom/2008/03_31_2008.asp http://www.nass.usda.gov/Newsroom/2008/03_31_2008.asp Even if we guess at 150 bushels/acre for 2008, with 86 million acres that's 12.9 billion bushels or 322-328 million tons (not sure which version of the ton the article is using). So 25% of the corn crop predicted to be diverted to ethanol. While this is a large increase since 2004, this is still just a quarter of a third of the total of Corn, Wheat, Soy, and Cotton crop. That's like 9%. The article points out that this 9% is more than their rough estimate of the shortage, but that's like blaming Florida for the outcome of the entire US election or for blaming a loss on the basketball player who misses a free throw in the final seconds of a close game. So the US magically switches off its ethanol production-- what then? Demand increases by that same level again and this time there's no ethanol scapegoat.