Word: ethanol
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...grain-feed prices have risen as a result of a drought in Australia as well as the accompanying use of corn for ethanol, which has reduced the amount available for feed for Japan's cows. The drought has also cut back on milk that would have been imported to supplement the Japanese market. Combined with competing demand for milk and milk products from emerging markets in China and Russia, the result is a collapse of the local butter production in Japan...
...exert this power. As food prices worldwide spike, most of the world’s corn and soy crops are fed to animals—with grain-fed beef requiring 10 times more grain to produce the same amount of calories as direct grain consumption. This, coupled with absurd ethanol subsidies, incentivizes monoculture production of corn across the Midwest, which in turn erodes soil and creates nitrogen run-off into the Gulf of Mexico...
...Cuts in Ethanol Subsidies: Using fields to grow corn for ethanol production diverts the livestock-feed supply and occupies valuable land that could be used to grow food for humans. Along with low crop yields around the world and increased demand from China, it contributes to rising food prices. Under the new Farm Bill, corn-based ethanol producers may see their tax credit fall as much as 6 cents per gallon, down to 45 cents. The bill would instead offer a $1-per-gallon subsidy to producers of cellulosic ethanol, made from corn stalks, switchgrass and wood chips, which studies...
...Debate on Clean Energy While Michael Grunwald's article on the emerging ethanol industry was both chilling and truthful, it's damaging to demonize the global effort to develop clean fuels as "myth," "scam" and "hype" [April 7]. It is no myth that thousands of scientific teams are working feverishly to create biofuels such as ethanol, biodiesel and biobutanol from nonfood plants grown on land unsuitable for food production. We could not have landed on the moon without first launching at Kitty Hawk. We are getting better at this every day. Mark Beyer, Detroit...
Second, the U.S. and Europe should abandon their policies of subsidizing the conversion of food into biofuels. The U.S. government gives farmers a taxpayer-financed subsidy of 51˘ per gal. of ethanol to divert corn from the food and feed-grain supply. There may be a case for biofuels produced on lands that do not produce foods--tree crops (like palm oil), grasses and wood products--but there's no case for doling out subsidies to put the world's dinner into the gas tank...