Food vs. fuel a global myth
In the last five years:
- The U.S. corn crop has grown by 35%
- The U.S. production of distillers grain has quadrupled.
- The U.S. net corn food and feed production has increased 26%
For those that think the foregoing has resulted in the decreased production of other foods:
- Soybean plantings are up 18% this year
- Wheat plantings are up 6% this year
So why are prices going up? Simple: U.S. farm exports are up 23% this year.
More facts to ponder:
- There are 800 million acres of farmland in the U.S., and only about 30 percent of it is actually being used to grow anything.
- a $3 box of cornflakes contains 15 ounces of corn that cost 8 cents when bought from the farmer. So, farm commodity prices have almost no effect on retail prices.
- According to Merrill Lynch analysts, without biofuel programs, the price of oil would be about $13 a barrel higher than it now is. A $13 savings for each barrel could save the U.S. $65 billion in foreign oil payments.