Drought year could double corn prices, ethanol the villain: report

SolveClimate.org has published a detailed report from the University of Illinois, which found that a 1-in-10 drought year event could push US corn prices to $7.00 from $3.50. The report cites the impact of increased ethanol production (rising from 1.6 billion bushels of corn in 2005-06 to 3.7 billion bushels in 2008-09) in concluding that “the prices of corn and other foods sit on the edge of a knife.”

The article describes the EPA waiver mechanism as too slow, citing tat McMahon at Friends of the Earth, who said “if there is an immediate issue, like we saw in 2008, we weren’t able to deal with it immediately. By the time EPA got around to looking at it, the problem wasn’t that bad, so they said, well, we don’t have to do anything.”

The EPA denied a waiver petition filed by Governor Rick Perry of Texas in 2008, who was joined by Governor Jodi Rell of Connecticut but turned down by the other 48 governors when the request was circulated nationally. The SolveClimate article is notable for extensively quoting Friends of the Earth, which has a staunch anti-ethanol stance, without quoting any sources with a differing view.

More on the story.

More Coverage on this Topic

• The $6 Gasoline That Almost Was
• US ethanol growth to boost fuel additive market to $1.6B by 2016
• San Carlos Bioenergy in the Philippines expands as government encourages local ethanol production
• Florida renewable enrgy bill passes – good for tax credits, bad for algae
• EPA approves E15 ethanol blend registrations
• Capacity expansion better than greenfield projects, say ethanol producers
• Queensland’s election landslide: a message for state, country or the world?
• Clark says power of ethanol lies in its grassroots supporters

Tags: ethanol

Category: Research