Apr 11 2008
Replacing undesirable crops and planting more to bring down grain costs
There has been a lot of press lately about how using corn for ethanol has been driving up crop prices. However, I see a few benefits that come from this (and one is already starting):
- Farmers are starting to pull land that the government has been paying them to not plant back into production. This has been reported, surprisingly, by the NY Times: As Prices Rise, Farmers Spurn Conservation Program. It is only a small drop. Even if they keep it as “grassland”, it can become a material source for biofuels by planting grasses like switchgrass which takes little tending to.
- The possibility of replacing undesirable crops with ones that can be used for food or biofuels. One that comes immediately to mind is tobacco. Many crops (including corn) can be planted in the same area as tobacco. Some of these even have more potential (i.e. higher yield and lower cost) than corn for use in biofuels.
- A third, and least likely is the rethinking of the ban on hemp (the “industrial” kind not the “other” type which I do not, in any way, advocate the use of). Hemp can be used for many purposes including food, clothing, and biofuels.
What is happening is capitalism correcting the inefficient programs of government management of sectors of the economy. Hopefully more of this will happen.
