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Driftless SW Wisconsin | I believe crude oil prices will generally continue to increase. They have too. Oil is a finite resource with a rapidly increasing demand. Folks in China, India and other countries have in the past consumed much less oil per person than we have in the US. They will be catching up.
As oil prices increase the value of the ethanol will also increase. If we can raise corn efficiently, with minimal fertilizer and fuel usage, corn prices can rise also reflecting the increased value of the ethanol.
The University of MN operates a fleet of very efficient hybrid Prius cars. I rode in one last week and you could imagine a version running on E85. This is very efficient transportation in the future with very little crude oil required, at least much less than currently used.
I believe with Doug Jackson that we ARE entering an era of fundamental change in the next few years. We have to - it can not continue to be business as usual. Yes we will figure out how to raise more corn per acre but that will be necessary to meet demand. How long can we keep selling corn for 5 cents a pound???
What other useful product sells for 5 cents a pound?? And as corn acres increase, I believe bean prices MUST increase considerably or more corn belt growers will just forget beans altogether.
Now this does not apply in areas such as Plowboy's KS where beans fit into the rotation for other reasons. But he will see a benefit as bean prices increase due to reduced bean production in good corn growing areas.....jmho.
Fertilizers made from crude oil or natural gas will also increase in price, making other sources more feasible....fundamental changes.
Jim at Dawn | |
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Corn production in the next few years..."fundamental changes"
