04-29-2008, 04:54 PM
Food price and supply starts with corn, soybeans, and wheat. Demand of corn for ethanol production is driving the market today. This demand is setting historical high prices for these crops.
What that means:
1)Farmers choose to plant more corn. One acre lost to corn, is one acre less of beans, tomatoes or whatever.
2)When corn or grains are cheap, farmers will feed it to livestock. With record highs, they sell the corn for other uses. Means less cows, chickens, pigs. Higher meat prices.
3)Grains have always been one of USA leading exports. Keeping it home for ethanol, means less to others around the world. Impacts our balance of trade.
4)Some countries that export grains will protect themselves and stop exporting.
5) Biggest losers will be third world countries that need to import grains to feed their people.
6) We will see higher prices and temporary shortages now and again.
This is not intended to be all gloom and doom, but expect to adjust your food budget.
Here is a link that explains it much better than I can.
http://www.earth-policy.org/Updates/2008/Update69.htm
What that means:
1)Farmers choose to plant more corn. One acre lost to corn, is one acre less of beans, tomatoes or whatever.
2)When corn or grains are cheap, farmers will feed it to livestock. With record highs, they sell the corn for other uses. Means less cows, chickens, pigs. Higher meat prices.
3)Grains have always been one of USA leading exports. Keeping it home for ethanol, means less to others around the world. Impacts our balance of trade.
4)Some countries that export grains will protect themselves and stop exporting.
5) Biggest losers will be third world countries that need to import grains to feed their people.
6) We will see higher prices and temporary shortages now and again.
This is not intended to be all gloom and doom, but expect to adjust your food budget.
Here is a link that explains it much better than I can.
http://www.earth-policy.org/Updates/2008/Update69.htm