Keith Collins, chief economist of the Department of Agriculture, is responsible for the department's agricultural forecasts and projections and for advising the secretary of agriculture on economic implications of alternative programs, regulations, and legislative proposals. He has had a hand in every farm bill written since 1985.Ethanol is, doubtless, the favorite and fastest-growing alternative to gasoline. Ethanol production has exploded from 6 percent of the corn crop and 1.6 billion gallons in 2000 to a fifth of the corn crop and 5 billion gallons in 2006. And the crunch is going to get far worse before it gets better, the chief economist for the Department of Agriculture, Keith Collins, told Congress recently.
Collins says the explosive demand for corn has already outpaced what U.S. farmers grew in 2006, and with prices at a 10-year peak, farmers will respond by planting more this year. That means a cut in production of other crops, which will make them more expensive as well.
Corn farmers, of course, are delighted with their newfound fortune, but food wholesalers, hog and poultry farmers and others are getting pinched or will soon. And Collins says exports are likely to begin declining and that the environment could suffer as marginal land is put into use or land is over-farmed. Retail food prices will begin rising late this year.
POSTED BY: Bob (March 27, 2007 09:54 PM)
I agree with your second point on weaning oil addiction by supporting greater use of ethanol. Coupled with that should be policies that promote plug-in hybrid vehicles.
I have to take issue with the first part. We do feed the world, never mind ourselves quite well, wouldn't you say? When it comes down to it, I'd rather NOT see my tax dollars go to a sugar farmer down in Louisiana to subsidize their inefficiency relative to importing it from the Caribbean. And the same can be said for several other ag commodities. Why should we subsidize the production of commodities! The only way we can compete in the world is by producing less labor-intensively - hence the Agricultural footprint is no longer that of family farmers but of large Corporate concerns. Just the way it is - or maybe not... ...I have just signed up to get 20 weeks worth of organic vegetables from my local farmer each week this summer.
POSTED BY: monty (March 27, 2007 10:46 PM)
I believe this will help our economy, by keeping money in the United States. Why buy foreign energy when we can produce it right here right now. I hope the farmers of America can take full advantage of this great oppurtunity for them.
POSTED BY: barbara (March 28, 2007 07:51 AM)
I guess any reason to raise prices on the most plentiful crop in America is a good reason! Humm, I wonder if that means that crude oil prices will come down since the demand will weaken?
Don't lose site of the bouncing ball!