If you are a grain farmer in the US, it's hard not to like the push for Ethanol as an alternative fuel. After all it has been a tough few years with thin to negative margins, and constant talk about doing away with the subsidies that function as profits in the Humpty-Dumpty economics of conventional agriculture. Now the price of corn is skyrocketing, and farmers' wallets fattening. Of course if you are a livestock farmer (or feedlot owner) you don't like the corn ethanol push because it raises ther cost of your main production input. But that is only part of the picture.
Myself, I think the price of grain ought to be higher (and subsidies lower) to remove some of the distortions from the market, and to remove the ad-hoc subsidy of non-farm (by that I mean CAFO) meat production. But I don't think straining our food producing acreage even further to grow more corn so we can continue to drive too inefficient vehicles too frequently, for too little reason is the way to do it. If we must make ethanol, let's do it right, with more appropriate, cellulosic crops.
An editorial in today's New York Times, "Honesty About Ethanol," [link] reminds those who might have forgotten that production economics is only one part of the food and fuel production puzzle. Climate change triggered by greenhouse gass emissions -- especially after the recent election -- is going to have to be a part of the analysis. Superficial analysis in support the 2007 Energy Bill looked at ethanol as essentially carbon neutral in that carbon released when burned was matched by the carbon sequestered when it was growing. This, of course, ignored conversion efficiency or the energy balance of ethanol production (itself a matter of persistent debate), but even more troubling are the indirect effects of altering the market economics for corn by stimulating a huge new demand.
Domestically, it means that farmers are taking land out of conservation programs and putting it into corn production. That land was functioning as a carbon sink (as well as wildlife habitat), and when it is plowed up much of that carbon is released. Internationally, it means that Third World Farmers, clear more land (think climate critical rainforest) to make up for the loss of now too expensive imported corn. Fact is there are plenty of waste materials -- called so because they currently go to waste, I guess! -- and some perennial grasses that offer a much better alternative than re-directiing food crops to fuel production. (We deal with this carbon / fuel / food question in more detail in our blog Sinks or Swim.)
Food and fuel; we've been binging too long. What we need is a 12 Step Program for our energy addiction; corn ethanol is just the hair of the dog.
