Sunday, April 1, 2007

Corn going up, production increasing

Going green brings with it a cost. Increased use of corn for making ethanol fuel additives brings with it increased costs and encourages farmers to produce more corn. Planting more corn also means less of other crops will be produced. China and India have also indicated they will import more corn. The circle goes round and round. Read more about the impact on the economy and other costs...
News and Observer
March 31, 3007
Nafeesa Syeed and David Pitt, The Associated Press

DES MOINES, IOWA - An ethanol-fueled boom in prices will prompt U.S. farmers to plant more corn than they have since the year the Allies invaded Normandy. However, surging demand still could mean that consumers pay more for everything from chicken to cough syrup.

Farmers are expected to plant 90.5 million acres of corn, according to the U.S. Department of Agriculture's annual prospective plantings report, released Friday. That would be a 15 percent increase over 2006 and the most corn planted since 1944.

The move to plant corn is in large part because of a rush to produce corn-based ethanol, which is blended with gasoline. There are 114 ethanol refineries nationwide and 80 under construction. Read more...

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