Inflation in food prices reaches 25-year high. Thanks, ethanol.

[Occam Bandage]

http://uk.reuters.com/article/oilRpt/idUKN1433616520071214


Rising U.S. food inflation, now a 25-year high, is reminiscent of the 1970s and will continue for the next five years due to growing world economies, increased food demand and a sharp expansion of corn-based ethanol production, a top food economist said on Friday.

Futures prices on the Chicago Board of Trade, the benchmark for commodity grain and soy markets, have risen to multi-year highs this year. Wheat hit an all-time high of $9.81-3/4 a bushel just on Friday. Soybeans on Friday reached over $11.60 a bushel, a price not seen since 1973, and corn rose to $4.37-1/4 in February, the highest level in a decade.

During the next five years, food inflation is forecast to increase by an average of 7.5 percent, well above the 2.3 percent average of the past 10 years.

While most of the U.S. corn crop, or 43 percent is fed to livestock to produce meat, dairy products and eggs, an increasing percentage is being used to produce ethanol. Twenty-four percent of this year's corn crop will be turned into ethanol, up from just 14 percent two years ago.


So. What are the odds any politicians are willing to stand up against the corn-ethanol scam? Clinton voted against subsidies and mandates for corn ethanol many times in the Senate, but predictably changed her tune as soon as she started campaigning in Iowa. Obama's completely in favor of it. Edwards is too.

Corn ethanol has no advantages. It's almost as dirty as gasoline. It requires nearly as much energy to create as you get by burning it. And it's consuming a quarter of the American corn crop already. It's driving food prices upwards, which is catastrophic for the poor in America and worldwide.

This is why letting one unrepresentative state have such influence is a bad thing.

[aquart]

1. Wheat: ten dollars a bushel.

[Subdivisions]

4. Is that good or bad?

:shrug:

Sorry, I have no frame of reference when it comes to wheat. I do, however, have some knowledge of inflation as it relates to the price of oil and fossil fuel products, nevermind the accurate concern cited by the OP re: ethanol production.

[TechBear_Seattle]

5. Wheat is not used in making ethanol

And "per bushel" means that it is the price paid to farmers before distribution, so the increasing cost of petrol is not a factor either.

Basically, all foodstuffs are becoming more expensive, not just corn and not just at the grocery store.

[Occam Bandage]

6. Worldwide demand is rising.

[NashVegas]

8. There Is Less Crop Space for Wheat and Other Items

That's the conventional wisdom among the anti-ethanol peeps, who claim that's what's pushing prices up.

Not saying I agree or disagree, I don't know enough.

[SoCalDem]

17. If you have 400 acres than can grow corn, wheat or soy beans

and corn sells for $10, wheat for $5 and soy for $5, what would YOU grow?

Incidentally, it's NOT one bit accidental that the agro-businesses expanded at the same time as the oil companies & chemical companies.. They are all in bed together, and notice how the oil companies are now promoting "green energy, solar etc"..They have been buying up patents for DECADES and just shelving them so that most of the devices, technologies never competed with them..

Since Carter rang the alarm bell, DECADES have gone by.. We couls have solar panels on EVERY roof in america by now, and could have huge solar "farms" in desert areas, along with wind farms..

We could have been energy independent YEARS ago IF we had not allowed ourselves to be privatized and screwed over for all these years..

[NashVegas]

20. I Interviewed a Guy Who Wrote a Book on Peak Oil

One of his major points was that it's a good idea to keep your investments with energy companies, as they will make it their business to be at the forefront of producing, no matter what the means are.

[Occam Bandage]

2. kick

[pansypoo53219]

3. but but but

georgie said everything is hunky-dory.

[ThomWV]

7. That price increase doen't have much at all to do with ethanol

[magellan]

9. Ethanol is just part of it

High fructose corn syrup, corn feed...ethanol is impacting the price of a lot of foods. But no, it definitely isn't all of it. Gas prices play big into inflation, as does the diminishing value of the dollar.

[Occam Bandage]

13. Sure it does. It has to do with many things, and ethanol is one of them.

First, corn is the most commonly grown US crop, and a quarter of that goes to ethanol. Secondly, corn is the most common American feed crop, and, again, a quarter of it is going to ethanol. Transportation costs are there too, but even before transportation costs food prices are rising. Finally, worldwide demand is increasing, while production is stalling.

[uppityperson]

10. Get rid of nasty ethanol, use more oil!!! bwahahahahahaaha

Hmmm, transporting food costs have risen dramatically, more people in world, factory farms having issues, nope, must be ethanol that is is problem.

[Occam Bandage]

11. All are issues. Ethanol is the most egregious, because we can change that one.

And you're kidding yourself if you think corn ethanol is cheaper or greener than oil.

[LynneSin]

14. Corn Ethanol has been proven to be less efficient than other types of Ethanol

National Geographic did a great article comparing Corn Ethanol to Sugarcane and Prairie Grass Ethanol. Corn was the least efficient and is also causing the biggest impact on our inflation.

[LynneSin]

12. I try not to buy cheese because I love eating it but.....

Yesterday I thought I'd make some Chicken wraps and thought I'd buy some american cheese to put into

$7.99 a pound

:wtf:

I remember when I could get the store brand American Cheese for $3.99 a pound and that was only a few years ago.

[NashVegas]

15. Zoikes

Tried Muenster?

[SoCalDem]

16. Two years ago when I wrote about this, people laughed at me and called me an alarmist

Farmers only have just so much land, and they will grow whatever sells for the highest price.. It's nothing personal.. it's just economics..so get used to $8 boxes of Cap'n Crunch and be prepared to pour $6 a gal milk on that cereal..

[knitter4democracy]

18. It also takes a lot of water.

Good water, too. We don't need to lose more water to fuel.

As for food prices, people here are hurting. Restaurants are closing, and people aren't shopping at the more pricey places much at all. The bakery outlet is jam-packed whenever I go there now, and the cheaper stores in town are doing brisk business (but there's not as much in the carts, I've noticed).

[villager]

19. most of the U.S. corn crop, or 43 percent is fed to livestock to produce meat, dairy products..."

And the one thing in everyone's control is to eat "as low on the food chain" as they can, even a couple more times a week...