The Ethanol Mandate is Killing the Cattle and Hog Industry – Kevin Grier, George Morris Centre

[ASRG]

Maybe the meat industry will have to change? If it makes more sense finacially to grow crops on suitable land, then that is a good thing?
Land unsuitable for crop production could still be used for cattle production and beef would still be produced? It might not be what the market has decided is the "best product" but it will find a market? How much of the worlds beef is grain fed?
If the North American consumer wants grain fed baby beef then they will have to step up to the plate and pay for it. They might have to make a decision on whether they want to eat well or fill the gas tank on the BMW!
In my opinion ethanol has been a good thing in that it has brought to a head the problem of cheap food and the farmers need to get a sustainable return on his investment and labour. The world doesn't end because we don't have a cow? If growing fuel puts more money in my pocket than growing food, then that is the way to go? I'm tired of subsidizing the urbanite so he can have his RV, Hummer and power boat.

[newguy]

The only place higher grain prices have a effect is the poorer countries that people buy a bag of peas or grain take it home and make flour out of it. This grain may be already over 50% of their income.So if grain doubles it takes all their income to eat. But in North America if grain doubles it may add 10 cents to a loaf of bread. I feel for the poorer countries but farmers can no longer supply cheap food to them. So who's tax payers should help feed the 3rd world countries. Some of these countries are not willing to adopt new farming practices to feed themselves. [ GMO]..

[jensend]

so if farmers can't afford to supply the poorer nations won't there be an oversupply that lowers prices? if you think richer nations (which have smaller populations) are going to pay high prices while stockpiles build i think you should revisit your reasoning. your biggest market is poor people and you can't get money they don't have. to say that prices will stay high just because you want them to is a desperate hope. if prices rise to unaffordable levels they will also be unsustainable just by logic. if your customer starves to death they generally are out of the market.

[newguy]

I am not saying they get cut off food. Farmers are getting to be a small % of the population and should not be expected to foot the bill alone. This is going to be a problem in the future and all tax payers of the modern countries should expect to help pay to feed the world. Grain is still very cheap in our nation . Does anyone know of any other industry that can sell their product to China and be competitive?

[charliep]

Actually we don't feed the poor of the world. They feed themselves from local
production with the calories and protein they can afford to buy.

North America feeds the growing middle class in the developing world new
with diverse products they can't get locally. We also support their value added
industries such as livestock. Lots of areas of the world buy feedgrains and
protein again to satisfy the demand for better diets with meat.

When I listen to Kevin's clip (George Morris has been consistent on this), the
issue is not ethanol good or bad but rather the level of subsidy paid to this
industry. A weird comment but the livestock industry in the US at least
benefited from a subsidy to corn producers that paid them to over produce
(read cheap prices) and now the shoe is on the other foot (a subsidy to ethanol
that gives it an unfair advantage over livestock).

An interesting slide from a conference I attended is one that shows crop
production and consumption. Both were about 800 million tonnes just 50
years. Today if my memory is right are about 2 billion tonnes. By 2050, this
number will need to be closer to 2.5 billion based on trend.

Remembering the French revolution and the impact on Marie Antoinette,
perhaps the expression of the future will be let them eat beans. Perhaps both
ethanol and meat are unsustainable sources of demand.

[jensend]

maybe you want to take a look at how the concept that n. america is the world's foodbasket came about. hint: it's not for the benefit of farmers.

[hedgehog]

its really just a return to the old days, when it took a third of the farm to graze and feed the working horses that ploughed the land and hauled the corn to market.
my calculator tells me that one third of my place will grow enough ethanol to power my tractors/ truck.
no fuel spare for commuting to work.
when the horses went, we automatically went into surplus and the downward price spiral.
A starving man will happily pay you $100/bu

[newguy]

When the US taxpayer subsidizes ethanol. 100% of the ethanol stays in the US. When they subsidize grain any grain that was exported also exported tax payers dollars . For every action there is a reaction. The livestock industry needs to adjust.

[shaney]

Newguy. How do you suggest a hog farmer adjust to 7.00 corn. I'm sure they are all ears.

[newguy]

Same way grain farmers adjust to $650 fertilizer. They have been feeding top Quality durum. Thank you CWB..