As the technology improves in "cellulosic ethanol production", non-food
crops, easier to grow than corn, and needing fewer pesticides in far lower
quantities than corn, can be used to make ethanol.  The reaction of the corn
production juggernaut is to proclaim that "crop residues" from corn can be
processed in this manner, which would keep corn in the game as a biofuel.  

 

James,  nice note...  A cpl additions to your thoughts.  First the increase
in corn acres was an indirect relation to the ethanol issue.   The tempory
price spike from the federal Mandate did increase acres slightly,  but I am
sure given this seasons prices,  that will be going right back down.

The Biomass returned to the soil is interesting,  and yes it has some value
returned to the soil,  but there is no real issue in removing it either.
The problem is in ethanol production.  Stalks are actually better and easier
to process than the grain,  but the movement of the biomass is the issue.
If you compare a truck load of grain's potential the same volume truckload
of stalks,  Well the grain wins.  Transporting 50 million tons of biomass
eats a lot of fuel.

There are some changes in the works,  we shall see how they pan out.


Charles

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