Media Revelation: Ethanol is Causing Inflation

[RWSchilz]

CNBC's Cramer confronts Clinton on ethanol fallacy in interview; 'Nightly News' admits corn is causing higher food prices.

By Jeff Poor
Business & Media Institute
2/28/2008 11:30:09 AM

Finally, the media are connecting the dots and realizing the push for alternative energy is taking a toll on the American economy. The Labor Department reported on February 20 that the Consumer Price Index (CPI), a key inflation reading, rose 0.4 percent in January, matching December’s rise. One of the culprits behind the spike – increased food costs because corn is being used for ethanol. “Farmers are replacing wheat fields with corn to meet the demand for alternative fuel, but that means higher flour prices – and in one Pennsylvania pizza shop, more expensive pies,” NBC News correspondent Chris Jansing said on the February 27 “NBC Nightly News.”

http://www.businessandmedia.org/articles/2008/20080228112444.aspx

Finally they are beginning to figure it out!:yeah:panic:)

[sherrimae]

I have been wondering if the liberals were ever going to figure out that everyone's utility bills will go sky high if their plans are implemented, including theirs. Not to mention that the price of gasoline is going up and up.

[Nova]

Ethanol isn't the only factor driving up food costs. But (thanks to what others here have shared) a poor use of corn. And not efficient or cost effective. I like the idea of bio fuels, just not from corn.

[RWSchilz]

Exactly true!:)

[Nova]

Has anyone looked into what are good choices for oil alternatives? If we didn't need to import oil, it would be better for both the economy & national security.

[Newborn]

I WOULD say that wise farmers would start growing wheat now, but the government is probably paying them extra to grow corn instead.

[run2Jesus]

I wonder if the government is still paying farmers not to grow?

[r&j's mom]

Yes and no, the government is still paying farmers not to grow. The program that was set up by the gov about 10 years or so ago offered farmers a certain amount of money not to plant on that land. This was when grain inventories were high. The contracts were generally set up for 10 years. The land is just now starting to come out of "CRP" and is able to be farmed again. As the farmers land comes out, the gov is not putting anymore land in "CRP". So within a few years, all land will be farmed. My in-laws have about 400 acres tied up in "CRP" that's due to come out within the next year or so. They are anxiously waiting for the land to come out of contract because they can make alot more money farming it! In some instances, the gov. is allowing some farmers to end the contract early. But generally, most farmers have to wait until the contract is up.

So the answer is yes, farmers are still getting paid for land already in contract and no, the program is not continuing. I hope this wasn't too confusing!

In Christ,

[Tall Timbers]

Has anyone looked into what are good choices for oil alternatives? If we didn't need to import oil, it would be better for both the economy & national security.

I'd like to see our country do two things.

1) declare a national plan to research, discover, and implement alternative energies, it should be considered nationally urgent.

2) and in the meantime, allow for unfettered development of our existing natural resources, especially those in my state of Alaska.

[Rinji]

I have some additional insight to the ethanol problem.

My fiance talked to a farmer the other day. Basically the farmer said this.

Farmers switched over to corn for more money. But the extra money isn't necessarily from ethanol. The costs of farming corn is much lower than wheat because wheat requires much more care, and needs moist weather conditions.

The problem isn't as simple as moving back to wheat, or switching to wheat. The equipment for wheat is expensive and the payout, despite the recent hikes in prices, isn't enough compared to what they already get for corn.
Even with the shortage the farmers have little incentive to switch. They can only farm what works for their land and the drought is making it worse.