With New Ethanol Price Volatility, Farmers are at a Loss



The process works by chopping the complex raw wood molecules into smaller and simpler bits — the end product being single sugar molecules. The method can also be used on other second generation ethanol feedstocks such as grass straw. Once you’ve made the sugar, the rest of the process of making ethanol is as simple as making beer — literally.

In the report, “Will the Plunge in Grain Prices Mean Lower Food Prices at the Supermarket?,” the RFA points out that, while prices for agricultural staple commodities such as corn, wheat, and soybeans have all plummeted by about 50% in the last half year, food prices at the grocery store have remained highly elevated. At the same time, ethanol production has dramatically increased.
When the above factors are taken together, the link between grocery store food prices and corn ethanol production becomes dubious. Not only that, and also somewhat unintuitively, it seems that the diversion of relatively large portions of the US corn crop to ethanol production has very little effect on even the market price of corn.

In an upcoming review paper, professor Michael Scharf details how termites — which cause hundreds of millions of dollars in damage to houses in the US alone each year — might actually prove useful for something that most people could never have envisioned.
Through millions of years of evolution, termites have filled a niche in the animal world that takes precise chemical coordination between the digestive enzymes and microbes in their guts to turn the wood that they eat into sugars which can then be used to “fuel” the termite.
It is this seemingly easy transformation of wood into sugar in the termite guts that holds the promise for future ethanol production, because, once you have the sugar, it’s easy to make ethanol through fermentation.
While food-based biofuels are taking the heat for rising food prices, other solutions - like algae - are gaining a more serious following. For example, the UK’s Carbon Trust has announced plans for a project to make algae bio-fuels a commercial reality by the year 2020
But the situation is much more than some “food vs fuel” finger pointing. The fact that transport accounts for one-quarter of the UK’s carbon emissions is major driving factor - pun intended: it’s also the fastest growing cause of carbon emissions in the UK. If the government’s target to reduce overall emissions by 80% by 2050 is to be met, then initiatives like this are crucial.
Editor’s Note: I was in Houston, TX, last week, celebrating the International Year of the Planet at the first ever joint meeting between the American societies of Soil Science, Geology, Crop Science and Agronomy. With a significant focus on biofuels, this conference was rife with interesting materials.

In my last post I discussed how agriculture could regain its rightful place as the keystone of civilization due to the rise of biofuels over the next 30 years or so. But, in what seems a ridiculously colossal conundrum, hundreds of millions of impoverished people worldwide could face starvation due to competition of fuel land with food land.
Editor’s Note: I’m in Houston, TX, this week, celebrating the International Year of the Planet by posting on topics covered at the first ever joint meeting between the American societies of Soil Science, Geology, Crop Science and Agronomy. With a significant focus on biofuels, this conference should be rife with interesting materials.

Several times during the session the presenters highlighted the fact that biofuels have finally brought an inherent value to agriculture that was previously missing. This, more than anything else, is why biofuels are not going to go away. Up to now, the lack of agricultural value has caused a deep deficiency in the level of funding and investment that governments worldwide have provided for their agricultural security and infrastructure.
Over the last few months, things have been a bit gloomy in the world of biofuels. Earlier this year, they enjoyed a position of prominence as a viable means of reducing carbon emissions and addressing the energy crisis. Since then, federal mandates requiring an increase in the amount of land set aside for growing biofuel crops may have already contributed to rising food costs and, peversely, may have also actively triggered an increase in global warming. As a result, the public and political perception of biofuels is at an all-time low.

The issue stems from activist and Green Party candidate for Washington governor Duff Badgley’s attempts to drive customers away from a new biofuel station in northwest Seattle. Allegedly Badgley and his group, One Earth, have been harassing customers by taking pictures of their license plates and passing out leaflets that proclaim biofuels as a “scourge on humankind.”
Biofuels certainly have a hard row to hoe in terms of reaching sustainability, and the activists have some valid concerns, but a “scourge on humanity”? Really? It’s almost laughable.
The Sustainable Biodiesel Alliance (SBA) is a non-profit organization created to promote cradle-to-grave biodiesel practices for verifying that all points in the production and distribution chain are sustainable.
And now they want your input on what those sustainable practices and standards should be — they’ve released the first draft of their “Principles and Baseline Practices for Sustainability” (PDF) to the public under a 45-day comment and review period.
So, if you’ve ever questioned the wisdom of growing our own fuel, or you’ve wondered how biofuels can be considered sustainable at all given other seemingly cleaner options like solar, wind and geothermal, now’s your time to speak up.

According to the Nikkei Business Daily (via Tradingmarkets.com), Japan’s Suzuki Motor Company will begin selling cars that run completely on 100% ethanol in the US and Brazil by 2010. The company will begin the transition by first offering an E25 sedan for sale in Brazil this coming March.
Currently the most ethanol that a flex-fuel car can run on in the US is E85 — which is an 85% ethanol/15% gasoline blend. Suzuki’s move would mark a huge development in ethanol-powered vehicles, and a huge shift for Suzuki, which hasn’t had any alternative fuel-specific offerings in its lineup to this point.
Subscribe to our RSS feed or newsletter