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Ethanol: Inequity For Farmers
By Mr Ethanol | November 1, 2007
The spike in farmland prices precipitated by ethanol production and speculation will squeeze out growers of grain and vegetables other than corn. Pro or con?
BusinessWeek:
Pro: Big Corn’s Coup
Since President Bush called for a fivefold increase in ethanol fuel production by 2017, a scramble to snatch up farmland and max out corn production has ensued. The Agriculture Dept. projected that U.S. farmers will plant 90.5 million acres of corn in 2007, a 15% increase over last year and the biggest crop since World War II.
The corn gold rush has caused farmland prices to surge, especially in the Midwest, where the race to buy up land is the most fierce. In Iowa, the country’s biggest ethanol producer, prices have risen about 15% since last year, and the government reports record average-per-acre values across the country. One government study showed property prices averaged $2,160 per acre at the start of 2007, up 14% from a year earlier.
Who wins when U.S. farmland prices spike? Agribusiness, of course. Large industrial farms already benefiting from massive government subsidies for corn and soy crops routinely win out against small farmers. Allowing the big guys to bully the independents doesn’t fit well with the pastoral ideal of preserving the American farm.
This David-and-Goliath phenomenon hinders not only fair competition but also crop diversity. Excessive proportions of U.S. land are devoted to corn and soy, grown mainly with genetically modified seeds drenched in pesticides when they grow into plants. These industrial megacrops cause tremendous harm to the environment and increasingly force the U.S. to import fruits, vegetables, and other grains.
In this landscape, farmers committed to sustainable practices and crop variety have the least chance of securing room to grow. As the trend continues, it is no surprise that only the wealthiest Americans can afford the healthiest produce: organic. With the status quo of government-funded agribusiness, most Americans will fill up on cheaper, conventionally grown fruits, pesticides notwithstanding. Fresh heirloom tomatoes and plump organic peaches will remain out of reach.
Con: Trust the Invisible Hand…
Topics: Agriculture, Ethanol, Negatives, Positives |
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