Ethanol Is a Disaster for American Agriculture

Federal required ethanol is a boon for American corn growers, but a bust for American agriculture. Why? Ethanol is chiefly responsible for keeping the cost of American farm land high. It is a falsely productive use of farm land, because demand is mandated and production is subsidized. It keeps the prices of not only corn high, but also other commodities that depend on corn, such as livestock feed and food sweetners. But it is the effect of pushing land prices up that is the worst effect. High land prices drive American farmers out of America to regions of cheap farm land, such as Mexico and Brazil. High land prices raise barriers of would-be farmers to entry to agriculture in the US. These barriers retard the entire general agriculture, small farm, local food, green farming movement. As women now make up nearly 30 per cent of farmers and even more of the small farms, it keeps women out of this sector. By depressing the prosperity of general agriculture, high land prices retard the economic vitality of rural America. Ethanol is an economic disaster. It is an example and symptom of what is wrong with Congressionally instructed economics. It is a preview of what will happen with "green energy".