Ethanol Glut Sinking Farmers' Hopes

'Gold rush' fades as biofuel prices plummet

By Wesley Oliver, Newser Staff

Posted Sep 30, 2007 4:46 AM CDT

(Newser) – A glut of ethanol has sent prices plumetting, staggering the hopes of farmers and businesses who once counted on a biofuel gold rush, reports the New York Times. Companies and farm cooperatives built so many ethanol distilleries that production has far outpaced demand, in part because distribution hasn't kept up.

The average ethanol market price has plunged 30 percent in the last four months. “The end of the ethanol boom may already be here,” warned one economist. While government subsidies will likely keep production moving, the emerging troubles raise serious doubts that the biofuel can provide a reliable alternative to conventional energy sources.

[Images (5)]

[Videos (2)]

Corn farmer Keith Witt checks the quality of freshly harvested corn, Wednesday, Sept. 12, 2007 in Warrenton, Mo. The growing ethanol industry, and related rises in corn prices, is staking corn growers... (Associated Press)

A gas station displays the price of its cheapest gas, available only at some pumps, on a sign in North Platte, Neb., Tuesday, Aug. 21, 2007. Motorists wanting to stretch their legs and gas up in this... (Associated Press)

Republican presidential hopeful former Mass. Gov. Mitt Romney speaks to employees at the Pioneer Hybrids facility, Wednesday, April 4, 2007, in Johnston, Iowa. At a time when demand for the corn-based... (Associated Press)

Democratic presidential hopeful New York Sen. Hillary Rodham Clinton talks with research scientist Laura Higgins while touring the Pioneer Hi-Bred International Facility Research Greenhouses in Johnston,... (Associated Press)

An unsold 2007 Chevrolet Tahoe that operates on ethanol sits outside a General Motors dealership in the northeast Denver suburb of Brighton, Colo., on Sunday, July 1, 2007. Auto sales statistics show... (Associated Press)

« Prev« Prev | Next »Next » Slideshow

ethanol - From Farm to Fuel (halcollins0 (YouTube))

Myth: Corn Ethanol is Great (Sidewinder77 (YouTube))

View larger videos >>

« Prev« Prev | Next »Next »

To report an error on this story, notify our editors.

More Newser Stories

Food Prices May Force Cuts in Farm Subsidies

Normally 'untouchable' price supports at risk in Congress

(NEWSER) - Soaring food prices are putting pressure on Congress to withdraw some of the billions in farm subsidies and ethanol incentives that have been considered politically untouchable for decades, the Los Angeles Times reports. With average farm income more than $89,000 this year—30% above the national average—the White House wants to cut off payments to farmers who earn $500,000 or more. Farm lobbyists are trying to double that. More»

Iowa-Minded Candidates Learn to Love Ethanol

Doubts take back seat to politics

(NEWSER) - To a presidential candidate who has an eye on Iowa—and who among them can afford not to?—ethanol is a political home run. The Hawkeye State hosts 28 refineries, and every one of the ’08 hopefuls has duly supported some form of ethanol subsidies. This despite the fact that, as Politico notes, reservations about ethanol as an alternative energy source have reached a fever pitch. More»

Ethanol Guzzles 25% of US Corn; Links Food, Fuel Prices

Switch to corn-based fuel links grain and energy prices

(NEWSER) - When Congress passed its latest energy bill four months ago, the provision to boost ethanol requirements was exceedingly popular. But now, critics are lambasting that measure, and the ethanol movement in general, for linking skyrocketing food and oil prices. “We used to have a grain economy and a fuel economy,” one analyst tells the Washington Post. “Now they're beginning to fuse.” More»

Boom Time on Heartland Farms

US farmers strike it rich satisfying ethanol, export demands

(NEWSER) - The US economy may be teetering on a precipice but agriculture is enjoying what one industry analyst is calling a "golden age" after decades of decline, with bountiful harvests of crops and profits. The boom is fueled by the soaring demand from ethanol producers and to fill grain orders from China and India, reports the Wall Street Journal. More»

Ethanol More Mean Than Green

How biofuel steals from the hungry and hurts the environment

(NEWSER) - Far from the solution to America’s energy crisis, corn ethanol is “one if the great political boondoggles of our time,” Rolling Stone says in a scathing broadside. The “dangerous” and “delusional” hype over the corn biofuel raises the price of food for the needy because it puts corn to work powering SUVs. And on top of that, ethanol isn’t even environmentally efficient. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Ethanol Glut Sinking Farmers' Hopes