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Law Of Unintended Consequences: Corn Expansion Squeezes Biodiesel

by John Laumer, Philadelphia on 07. 9.07
Business & Politics

corn%20vs%20soy%20plantings%20for%202007.jpg

This story could easily be filed under Conspiracy Theory, Oil Company-Based. But is it deserved? "The U.S. Department of Agriculture reported Friday that farmers nationwide planted 92.9 million acres of corn this year - 19 percent more than last year and 3 percent more than the government had projected in March. The demand for ethanol led U.S. farmers to plant the most corn since 1944. But that extra corn acreage means that farmers planted 15 percent less land to soybeans.

The price of soybean oil is "almost to the point where it's not economically feasible to make biodiesel," said Dan Holesinger, manager of Clinton County Bio Energy...Food companies, which rely on soybean oil for baking and other uses, will also pay more." Via:: DesMoines Register, Iowa USA Image credit:: USDA, via The Register

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