Friday, February 1, 2008"Every age has its massive moral blind spots. We might not see them, but our children will." Bono
A few months ago, one of the publishers I work with asked me if I would like to write a finance column. I laughed and declined. Finances are not my forte. I asked if any other topics were open and she said that only farming was available. To her surprise, I jumped at the opportunity. I grew up on a farm. Farming is essential to our way of life in rural America and crucial to those living in developing countries.
Here is the essence of my last column for the
Tri County Business Focus:
The coming season promises to be full of controversy as our government endorses bio-fuel, and farmers watch the price of grain, formerly used for people and livestock, rise.
President Bush just signed a new energy bill into law raising the use of renewable fuel from 6 billion to 36 billion gallons by 2022, with a little less that half of that fuel coming from corn. Automakers must have their fleets operating at 35 mpg – or greater - by 2020, which is the first policy requiring an increase in automobile fuel efficiency in 3 decades. I wonder what prices at the gas stations would be if fuel efficiency issues were mandated twenty years ago.
The entire nation faces choices about protecting our environment
and the future use of bio-fuels. We must remember to factor in concerns about healthy food for livestock and ourselves.
Rather than increasing the production of corn to meet the demands for food, livestock and bio-fuel consumption, 6% less corn will be produced in the US this year. The result will be high corn prices until the production meets the demand during 2009.
As they wonder how they will feed their animals, farmers in the Midwest watch as the land prices skyrocket and the greed of producing bio fuel sets in. Livestock producers are concerned as they compete for corn and grains, and fuel for livestock becomes less important to produce than that for cars. John Phipps, of the US Farm Report, said, “These are curious times.”
As renewable energy, switch grass produces about 540% more ethanol than other sources. However, bio-fuel factories that produce ethanol from corn already exist – an enormous savings that must be considered. Since corn only uses 10% less carbon as fossil fuels, more reviews and revisions to policies - as well as more studies on third generation bio-fuels - are essential.
Two of the giant bio-fuel companies, Vera Sun and US Bio Energy, just merged. They expect to produce 1.6 billion gallons of ethanol. Small plants, like Bean’s Commercial Grease in Vassalboro, collect used yellow grease from restaurant frialators to produce bio-fuels.
Bill Gates and other foundations give millions of dollars in aid to farmers in developing nations. By producing their own food as well as bio-fuel for export, the third world could develop sustainable sources of renewable energy, as they climb out of poverty. We must make sure that large developers do not grab village farmlands, or raise food costs, so that corruption overtakes the production of bio-fuels.
I want to see US farmers succeed. I want to see impoverished farmers around the world raise crops that will create a sustainable future for the coming generations. I also want to see less dependence on fossil fuels and on OPEC.
I wonder at what point the USDA will become more focused on fuel rather than food. I wonder how political appointees – from any party - will balance the concerns of food producers with that of the Defense department and Homeland Security.
The corn and soybean market are already impacted by oil prices. At what point will the high oil prices dictate our food source? At what point will we make conditions worse for those around the world, rather than better? These are very curious times, indeed.
Peace -
Bonnie
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NEIDEEP at 9:13 AM