2011-02-24

Ethanol's Inflationary Cost

Ethanol's ramification from The Daily Reckoning:

"The corn-based ethanol craze is probably not being shown the door, but may be getting handed its hat. The costs for farmers in mounting food inflation is creeping up quickly: seed costs, fertilizer, fuel, irrigation, transport and leasing of acreage, etc. Costs of renting acres (for farmers who lease the land) have doubled in only a year. Most farmers I spoke with on my trip say it simply will reach a breaking point. They’ve seen it before."

I don't digest corn that well.

1 comment:

  1. Anonymous2/26/2011

    I think it is good that we know how to make this type of fuel additive/substitute, but it is something that needs to go away soon. It does not do what we need it to do. In an emergency, in a time of serious shortages when any fuel will do, and when fuel efficiency is seriously improved anyway, then it might have some value.

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