Wake Up NCBA, It Wasn't Ethanol

Kansas Viewpoint

Impact of ethanol production on price of corn proven to be miniscule.

Published on: January 16, 2009

The National Cattleman's Beef Association says it supports "second generation" ethanol, which does not use corn or other 'feed and food' products.

 

Ethanol made from corn, they say, drove up the price of corn and therefore their price of doing business and, even to the current day, is affecting the cost of feeder cattle.

 

I guess they missed the news flash – it wasn't ethanol, folks. Corn prices skyrocketed and that hurt your bottom line. But it wasn't ethanol that raised those prices. Look around you. Where are corn prices now? What is the rate of ethanol production? Get real. It's time for one segment of ag to stop eating another one.

 

Whether you think government subsidies are essential or whether you think they are evil, the reality is the subsidies that encourage ethanol production, from corn or anything else, has a minor impact on grain prices and next to nothing to do with cattle prices.