From the 19 February 2007 Lockport Union Sun and Journal (Lockport, NY) |
CORN IS GOLDEN The problem with single-issue special interest groups influencing what happens in government is the fact that such groups have no understanding of – and often no care for - the ramifications of their desires upon the rest of the world. They fail to see that in the realm of politics every action sets off a domino effect that deeply influences national culture, economics, and well-being. This chain of events is perfectly exemplified by what is occurring because of the emphasis on ethanol usage. For years the environmental crowd have demanded a change in our ways in regards to the consumption of our natural resources. They are well-intentioned in this desire, for not only have we been taking from Mother Nature but we’ve also been killing her through pollution. But, as much as we do need to change the energy sources that we use it’s an almost impossible endeavor due to the stubbornness of American consumers. We are a nation addicted to oil. This addiction is perpetuated by two other special interest groups that are just as powerful as the environmentalists: Big Oil and the American automotive industry. The former exists only because of our addiction and the latter is only equipped to provide products that consume what the former is selling. Saddled with such a drastic impasse of philosophies and capabilities, the politicians who felt obligated to comfort all the affected parties decided to balance all of their needs. Rather than fully appeasing only one group, all were appeased to an extent, meaning that in this case the capitalists and the environmentalists could claim some sort of victory. This balance was accomplished through legislation in various states as well as at the federal level (the EPA’s proposed Renewable Fuel Standards) which have dictated that gasoline shall contain a specific volume by percentage of ethanol. Unfortunately, by looking at the needs of only these groups, the government failed to look beyond the issue, ignoring the realm of economics and the needs of the most important special interest group: Our citizens. In the whole scheme of things, using ethanol rather than focusing on a true long-term victory like hydrogen fuel cells will have a negative impact on our society, thanks to, of all things, the almighty corn. Ethanol is derived from the distillation of corn. A bushel of corn produces an average of 2.7 gallons of ethanol. In 2006 the annual output of American ethanol plants reached nearly 5 billion gallons, three times what it was five years earlier. It is estimated by some economists that the ethanol demand created by legislation and new vehicles will cause American production to exceed 10 billion gallons per year by 2010. With this unprecedented demand for corn – and corn’s sudden transformation from only a foodstuff to a resource - comes two problems. One is high price while the other is tight supply. The high price will have the greatest impact on our well-being. In recent years corn sold in the mid-$2.00 range per bushel. Currently, corn’s value is over $4 per bushel and could reach $5 by this time next year. Pricy it is, but it so much more than just those few kernels on your plate. Corn is in everything…the sugary sweetener corn syrup is a found in sodas, beverages, cereals, candies, condiments and more. A tour of a grocery store will find you and your pocketbook unable to escape its grasp. Realize, as well, that meat prices are destined to go through the roof. Corn is the most important and expensive feedstock for beef cattle, pigs, and chickens and in many instances it accounts for 50% of a meat farm’s operational costs. So, as the value of corn continues to skyrocket, so will the cost of your meats (and milks). The other problem - tight availability of corn - is readily met with increased output. 10 million more acres of arable land are going to corn production this year. But, as that occurs (and more acres follow), fields that once supported soybeans and the like won’t, and their prices will rise. And, with a lack of non-corn land, more of our fruits and vegetables will be grown overseas. The more we rely on foreign nations to produce our food the greater of a danger we are putting ourselves in. Basically, corn is more than just golden in color. It is becoming golden in value as well. Ethanol is taking it to unfathomable values and negatively affecting the world around us. Even though ethanol as a renewable resource looks like a winner at first glance, it is not. It is feared that it will do more harm than good in the long run and it probably will, thanks to the self-important efforts of a few special interest groups.
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