Posts Tagged ‘ethanol’

Keep Kicking that Ethanol Can

Friday, August 10th, 2012

By David L. Brown

Yesterday I posted an analysis of the current forecasts for a poor corn crop due to heat and drought, and also mentioned that the obvious step to take is to suspend all ethanol production to free up the approximately one-third of the U.S. corn crop mandated to go to distilleries and into our gas tanks. If the corn crop drops by a significant degree, as seems likely, that mandated amount of corn will take an even larger bite out of the supply, perhaps even surpassing one-half of the total.

It’s deja vu all over again, as Yogi Berra said. Back in 2008 I posted this editorial cartoon that appeared on the cover of Quill, the magazine of the Society of Professional Journalists. (I am a 50-year member of SPJ and am immediate past-president of the New Mexico chapter.)

That cartoon is even more appropriate today, because the USDA is refusing to put a stop to the travesty even though a world food crisis is inevitable, putting hundreds of millions at risk of famine. And today, writing in The Financial Times, José Graziano da Silva, the director-general of the UN’s Food and Agricultural Organization, wrote (as reported by Reuters here):

“Much of the reduced crop will be claimed by biofuel production in line with U.S. federal mandates, leaving even less for food and feed markets,” he wrote in an op-ed just a day before the U.S. government issues a pivotal crop report that is expected to show U.S. corn output falling to the smallest in six years and stockpiles at near record lows.

“An immediate, temporary suspension of that mandate would give some respite to the market and allow more of the crop to be channeled towards food and feed uses,” he wrote in a high-profile yet indirect message to Washington.

Obviously, the line has been drawn in the sand by those in charge in Washington and it’s to favor the owners and operators of ethanol plants vs. hundreds of millions of endangered human beings. And not to mention the “inconvenient truth” of food shortages and higher prices right here at home. Already, as I mentioned yesterday, ranchers are liquidating their herds in the face of dried-up pastures and hay crops. How bad is it way out West? I saw a post a few days ago from a rancher in west Texas who said that he’s received just three inches of rain in the last two years.  His critters have long since gone to market and he’s facing a bleak future.

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Drought Spreads, World Famine to Follow

Thursday, August 9th, 2012

By David L. Brown

The drought in America not only isn’t getting better…it’s getting a lot worse. The combination of heat and lack of rain has put a large portion of the nation’s field crop prospects in severe jeopardy. The Associated Press today has an update, and the news is far from encouraging. (You can read the AP article, “Report: Drought Worsens in Key Farm States” here):

The latest statistics from reporting agencies reveal that the proportion of cropland in Iowa that’s in extreme or exceptional drought more than doubled just in the last week, from 30.74 percent to 69.14 percent now. In Illinois, the levels of extreme or exceptional drought rose to 81.18 percent. And in Nebraska, the percentage of land in those categories rose by another 8 percentage points to 91.2 percent of the total.

It’s hard to grasp just how serious the implications of such catastrophic figures are for our future, and the degree to which the situation has worsened in just since the last weekly report is ominous to say the least. Overall, more than one-half of the nation’s corn crop is rated poor to very poor.

The conditions in Iowa, Illinois and Nebraska are particularly serious. You may think, well those are only three states so can it really matter that much? Well, first, they’re not the only states that are in trouble, but there’s something special about those three, Iowa, Illinois and Nebraska. That special thing is that they are generally our nation’s three largest producers of corn. Let’s look at last year as a benchmark. According to a USDA report issued in September, 2011, Iowa’s corn production was projected at 2,296,250,000 bushels. Illinois came in second at 1,980,300,000 bushels, and Nebraska was in third place at 1,544,000,000 bu. Between those three states alone a total of 5, 820,550,000 bushels were projected. That’s just under six billion bushels of corn.

How much was the entire nation projected to produce when the harvest was done? Good question, I’m glad you asked. The answer is 12,497,070,000 bushels. About 12.5 billion bushels, of which about 5.8 billion came from those three states of Iowa, Illinois and Nebraska. Which means that those three states represent about 46.4 percent of America’s total corn crop as of 2011 and the other 47 states produced only 53.6 percent of the total (and just to make sure you understand, crops in many of those states are experiencing extreme drought stress).

Note also that the U.S. usually grows about 40 percent of all the corn in the world, and is the largest exporter by far. What all this means is that that old Nemesis Famine is about to stalk the planet. Drought is also being experienced in other parts of the world, including India and China with their huge populations that need to be fed. Some countries, such as Egypt with about 80 million people in a country that is 97 percent sandy desert, are almost totally reliant on imports of grains, including corn which is used to grow livestock and poultry for food. Other nations, such as Mexico with its need for tortillas, are also dependent upon imports of American corn.

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Posted in Agriculture Issues, Climate Change, Famine, Fossil Fuels | 1 Comment »

Is the Biodiesel Nightmare Over?

Tuesday, January 19th, 2010

By David L. Brown

Congress has allowed a $1 per gallon subsidy on biodiesel fuel to expire, causing the struggling “faux fuels” enterprise to stumble to a halt. According to The Brock Report, an agri-business consultancy, “that industry has all but closed up shop.” The Brock announcement also included this:

“Pretty much every plant is idle,” said Michael Frohlich, Director of Communications for the National Biodiesel Board (NBB).

Even with the federal tax incentives, the biodiesel industry was already in deep trouble. U.S. biodiesel production was down 31% last year compared to 2008 due to a lack of profitability.

Monte Shaw, Executive Director of the Iowa Renewable Fuels Association says only 73 million gallons of biodiesel were produced last year from that state’s production capacity of 320 million gallons. Nationwide, last year’s capacity utilization was even worse than in Iowa at only 15%.

Bio-diesel fuel is made from soybeans, an essential foodstuff. As we have discussed repeatedly here, to divert crops from the world food markets as hundreds of millions hover on the edge of famine is a travesty.

Like its evil twin, ethanol, biodiesel is an unnatural product that has no place in the world. Not only do these faux fuels take food from hungry humans, they encourage over-planting, resource depletion, and soil erosion. By causing commodity prices to be bid up, they increase food prices worldwide, a cascade effect that hits eveyone from middle class Americans to the poorest of the poor in the Third World.

I don’t know if the Senate failed to extend the subsidy on biodiesel through wisdom or mere carelessness, but whatever the reason, the result is one that we can heartily support.

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