Interesting report by Mark Steil of MPR on Minnesota farmers’ soaring incomes — which rose by 70 percent last year, according to a University of Minnesota survey.
It’s the ethanol, stupid: Steil writes that “Rising ethanol production was the most significant factor in boosting grain prices. Most ethanol is made from corn, so increased production of the alcohol fuel increased the demand and price of corn. Ethanol also had a secondary impact. As farmers planted more acres with corn, soybean and wheat production fell. That lowered supplies of those commodities and led to higher market prices.”













2 Comments »
Comment posted April 13, 2008 @ 4:20 pm
Can’t eat ethanol http://www.boston.co...
“Greater use of ethanol means more greenhouse gases and more expensive food for people and livestock, hardly a fair exchange. There’s a limited role for biofuels, excluding corn, in reducing oil imports from volatile regions, but they are not the answer to the world’s need for energy on the go.”
Comment posted April 13, 2008 @ 11:20 am
Can't eat ethanol http://www.boston.co...
“Greater use of ethanol means more greenhouse gases and more expensive food for people and livestock, hardly a fair exchange. There's a limited role for biofuels, excluding corn, in reducing oil imports from volatile regions, but they are not the answer to the world's need for energy on the go.”
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