Rising food prices has troubled everyone in the world. A lot of people are blaming most of it on the use of corn for ethanol. Is that really the cause of the problem or is it rising fuel prices?
Food for Fuel
It should be no surprise that we saw a lot of people touting the use of corn for fuel was a good idea. The corn used is feed corn and is not the normal human consumption type. Almost every expert, politician, and average person saw it as a good thing and demanded it. Corn’s an easily renewable resource and America has lots of farmland. Nobody should’ve been naive enough to not foresee a slight hike in feed corn prices. That was going to happen regardless because of supply and demand. The supply was just not there at the time to support the demand and it was only going to take a matter of time before it regulated out. This was encouraged with government programs that helped farmers by giving money to those growing ethanol use corn. For a year or so, everyone would see lopsided growing until things started balancing out. Don’t believe me? Look up how many non-food uses we have for corn, wheat, oats, etc. There’s a lot! We’ve just found another use for corn, but people think that the industry won’t balance out. It’s true that farmland is drying up some due to no money in farming, but there’s still a lot of it out there. The American government has been trading food for fuel for the longest time and that hasn’t created price hikes in food.
The Reality
What’s really causing across the board price increases? Gas prices. There’s nothing mystical about it. Fuel is required to run tractors, transport food, and to process food. I’ve worked on my family’s farm and I know that the biggest cost factor is fuel. My family has seen huge price increases in all the supplies that they need. Fertilize is a very integral part of growing and it’s needed to get a good yield. However, the cost of fertilize has risen so much that my family has scaled back the farming business. Why’s fertilize and other things that farms use so high? It costs the companies so much money to transport the materials due to the rising gas price. That has caused everything produced on farms to go up in cost and in turn made the price we pay to go up.
In conclusion, I can’t completely disagree that the cost of food has gone up some due to corn being used for fuel. It’ll take some time for the farms to balance out again. However, I think it’s an insignificant amount that it would’ve made food go up. The real burden we face is the rising fuel costs such as diesel which is much higher than regular gas. Fuel plays such an important role in food production that one would have to be completely uneducated to not see how much it’s impacted food costs on all levels.
Corn for ethanol is not the ultimate way to end our dependency on foreign oil. It’s just a start for a better way of life. As we all know, you have to start somewhere.