Ethanol manufacturing uses a tremendous amount of water which is why ethanol has been a topic here, here, and here for so long. If you’re new to the debate start here with 10 Things to Know. Then read this New York Times piece on the rising price of food:
For years, cheap food and feed were taken for granted in the United States.
But now the price of some foods is rising sharply, and from the corridors of Washington to the aisles of neighborhood supermarkets, a blame alert is under way.
Among the favorite targets is ethanol, especially for food manufacturers and livestock farmers who seethe at government mandates for ethanol production. The ethanol boom, they contend, is raising corn prices, driving up the cost of producing dairy products and meat, and causing farmers to plant so much corn as to crowd out other crops.
The results are working their way through the marketplace, in this view, with overall consumer grocery costs up roughly 5 percent in a year and feed costs up more than 20 percent.
Now, with Congress poised to adopt a new mandate that would double the volume of ethanol made from corn, ethanol skeptics say a fateful moment has arrived, with the nation about to commit itself to decades of competition between food and fuel for the use of agricultural land. [From Food and Fuel Compete for Land – New York Times]
I’m not too bothered about the price of corn. It is actually a fairly lousy food source, with low yield of edible bits compared to the volume of the plant. It is not well digested by humans, and it has very little nutritional value, other than the energy value from the sugar content.
The problem is that ethanol subsidies have created an artificial market for corn which is causing agribusiness to convert from farming something that does have some nutritional value to growing feedstock for fuel, This shift in growing has a huge impact on water usage — a 50 million gallon per year ethanol plant would require 265 million gallons of water and reduce our dependancy on oil by only 2.5%.
The problem isn’t ethanol itself, despite its profound drawbacks as a fuel. The problem is the subsidies completely screwing with the market.