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Originally Posted by hdnt1550 Well if your a farmer you love the idea. Corn is up to $5 a bushel. Which in tern raises food costs for everyone. |
This is from our department of Agriculture here in Florida.
They estimate that the rise in food price by the extra use of corn is only three percent, the rest is from increased fuel cost. But I will let you read the article, this was from last week.
Bronson Calls For Federal Probe Of Fuel Prices
Florida Agriculture and Consumer Services Commissioner Charles H. Bronson called on Congress and the Bush Administration to launch full and thorough investigations into skyrocketing fuel prices which are threatening the state and U.S. economy, as well as jeopardizing national security.
At the same time, Bronson is urging Congress to resist efforts to slow down the production of ethanol and bio-diesel, arguing that the production of alternative fuels is the most effective option in assuring that fuel prices moderate and that future energy costs are affordable.
Toward that end, Bronson, who serves as the state's primary consumer protection official as head of the Department of Agriculture and Consumer Services, said it is imperative that Congress and the White House initiate comprehensive investigations into all aspects of the oil business, including production, trading by investors and speculators, and ultimately the marketing and sale of fuel.
What Congress must resist, he argued, are rumblings in Washington to limit the production of alternative fuels because of criticism that ethanol produced by corn is a significant factor in higher food prices because it removes a portion of the nation=s corn production from the human and animal food chain.
In fact, the President's Council of Economic Advisors estimates that only 3 percent of the total increase in food prices this year is attributable to corn that is being diverted for ethanol production. Analysts say the most significant factors in increasing food costs are higher fuel prices, greater demand in countries such as China and India, and droughts in several major food-producing nations.
In January 2006, Bronson unveiled Florida's "Farm to Fuel" initiative, a program designed to use Florida's more than 10 million acres of farm and timber land to produce ethanol and bio-diesel as a means of keeping Florida land in open green space and in an effort to reduce the state and nation's dependency on foreign oil.
What Bronson's plan envisions is the primary reliance on cellulosic material, wood, grasses and other biomass, to produce alternative fuels.
To date, 14 companies and universities have received $30 million in state energy grants under the "Farm to Fuel" program to construct commercial ethanol or bio-diesel plants or conduct demonstration projects designed to show the feasibility of alternative energ