The corn production in this country is huge. For many years a large part of the crop ended up rotting somewhere because it wasn't used. The government pays price supports to corn growers if the price falls below a certain point. Last I heard it was 2.80 bushel. Now the price is over 4.00 and the farmer is making a decent profit. Not even a shadow of what the oil companies make, but a fair profit. Has anyone even mentioned the savings to the USDA from not paying price supports? Around here quite a bit of the Milo and Soybean production has been switched over to corn production. Most farmers are double cropping where they used to single crop. Winter wheat is off the field by July then short season corn will be planted to be harvested in October. This year's crop will be significantly higher than last year's and if needed CRP ground that was idled 10-20 years ago can be returned to production with a stroke of the President's pen. Something like 25% of Kansas land is in the CRP program right now. The amount of idle farmland in the US is huge.
As far as the cost of milk, poultry and beef is concerned, it may have increased prices some, but how do you explain the costs of canned foods, vegetables, and boxed foodstuffs? The major increase in the price is due to increased cost of transporting goods to retailers. It's directly is tied to the price of fuel because nearly everything is transported by trucks. Hasn't everyone noticed that the cost of nearly everything has risen? I get new pricelists from my vendors every quarter instead of every year. Anything with steel in it has doubled in the last 2 years. Anything with plastic has doubled in 2 years.
The petroleum companies have launched a smear campaign against ethanol and, unfortunately, people are buying into it.
The most compelling argument is: Brazil is running on ethanol and doing it very successfully. I've heard is no compelling argument why the USA is incapable of following suit.
The oil inventories just came out. Crude oil inventories are up 6.5 million barrels this week. We are awash in oil and the price still goes up. There was a build of 1.7 million barrels in gasoline, the 7th week of building inventories in a row. Miles driven has dropped constantly this spring. Yet the price stays above 3.00 gal. A friend works at a refinery in Oklahoma. They have cut back hours and laid people off because of production cutbacks. The storage facilities are full. Yet the price of gas stays at 3.00. US refineries have cut the number of gallons of fuel produced by 25% since 2000 and have built no new refineries since 1977, and we still pay over 3.00 a gallon for gas. We are being scammed and America needs to fight back. Our weapon is ethanol.