Corn Ethanol Revisited
The family has a grain farm in the Midwest. It's a business, and there was considerable discussion last year about, well, should be perhaps be getting involved in the production of corn ethanol. I was against it.
Now, I'm hearing that corn prices are through the roof. This is good for the family farm. Selling corn means more money in the bank.
Why is corn high? Because all...well, a lot of the corn is going to ethanol, to be used for fuel. And fuel costs are going up because corn is going up.
And, eggs are going up, because it costs more to haul the eggs to market and to feed corn to the chickens. Corn tortilla's are going up because corn meal costs more to buy because there's less corn around and the corn costs more.
And beef is going DOWN because farmers aren't giving corn to the cows to fatten them as much. They just want to sell them to market early because they can't afford to pay for the corn to fatten them up as much. BUT, eventually, the cows available will run in short supply as they are sold off early, so the cost of beef will skyrocket higher than it is now. I give credit to this market supply issue to Glenn Beck. I suspect it will be even worse than he says, though, because corn will be in even shorter supply, so the price will go even higher.
Today, there is about 10% ethanol in gas. You should know, ethanol is not fuel efficient, so we are actually getting less mileage out of a tank of gas when we have ethanol, than if we have all gasoline in our gas tank, if this makes sense.
Now, combine all this with the fact that the government is currently considering going to 20% ethanol in fuel, because everyone thinks that 10% ethanol is just going so peachy in the US. Heh heh.
Now, as oil is over $110 a barrel, gas pumps are averaging $3.27 a gallon nationally, grocery prices are rising, unemployment is up, bankruptcies are up, national unrest is up, I ponder...Is corn ethanol a good fuel solution???
Tags:ethanol auto news auto-news automotive car dealer cardealer dealer dealership dfwcarfinder trends
Now, I'm hearing that corn prices are through the roof. This is good for the family farm. Selling corn means more money in the bank.
Why is corn high? Because all...well, a lot of the corn is going to ethanol, to be used for fuel. And fuel costs are going up because corn is going up.
And, eggs are going up, because it costs more to haul the eggs to market and to feed corn to the chickens. Corn tortilla's are going up because corn meal costs more to buy because there's less corn around and the corn costs more.
And beef is going DOWN because farmers aren't giving corn to the cows to fatten them as much. They just want to sell them to market early because they can't afford to pay for the corn to fatten them up as much. BUT, eventually, the cows available will run in short supply as they are sold off early, so the cost of beef will skyrocket higher than it is now. I give credit to this market supply issue to Glenn Beck. I suspect it will be even worse than he says, though, because corn will be in even shorter supply, so the price will go even higher.
Today, there is about 10% ethanol in gas. You should know, ethanol is not fuel efficient, so we are actually getting less mileage out of a tank of gas when we have ethanol, than if we have all gasoline in our gas tank, if this makes sense.
Now, combine all this with the fact that the government is currently considering going to 20% ethanol in fuel, because everyone thinks that 10% ethanol is just going so peachy in the US. Heh heh.
Now, as oil is over $110 a barrel, gas pumps are averaging $3.27 a gallon nationally, grocery prices are rising, unemployment is up, bankruptcies are up, national unrest is up, I ponder...Is corn ethanol a good fuel solution???
Tags:ethanol auto news auto-news automotive car dealer cardealer dealer dealership dfwcarfinder trends
posted by Jim at 9:07 PM
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