The pie in the sky ethanol biofuel industry will face its first serious test this year. Prices will increase because corn molds are much higher than normal. The higher mold damage is the result of higher water content of the corn caused by above average rain. Global weather change may well spell disaster for food and the ethanol from corn industry. Less corn will be harvested so the price of corn and corn based ethanol will increase.
Richard Stroshine, a professor in the Department of Agricultural and Biological Engineering at Purdue University, has developed guidelines to prevent as much loss as possible for corn growers in Illinois, Indiana, and Ohio.
Each measure recommended by Stroshine will add cost to the harvesting of corn this year. The
cost increase is not intentional (as some conspiracy theorists may prognosticate) but a necessity due to the conditions that exist. Those costs must either be passed on to the consumer of food and E85 or eaten by the farmer. Supply is going to be smaller than last year.
This is the first real world test of the United States capacity to produce ethanol for fuel when faced with a naturally occurring event. We can most likely expect a response that was as effective as the response to Katrina.
If you bought a "cash for klunker" E 85 automobile get ready for a non tax payer funded surprise - higher E85 prices - a lot higher.
All gasoline prices will increase because all gas is part ethanol now. The conspiracy theories will abound rather than face facts that the government did not expect or prepare for a know natural phenomena when it threw billions at the ethanol industry.
http://media-newswire.com/release_1103796.html
http://www.grainquality.org.
Agriculture News Page @ purdue.edu
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