Wednesday, November 28, 2007

Ethanol Craze Cools

From the Wall Street Journal (front page!):

Little over a year ago, ethanol was winning the hearts and wallets of both Main Street and Wall Street, with promises of greater U.S. energy independence, fewer greenhouse gases and help for the farm economy. Today, the corn-based biofuel is under siege.

In the span of one growing season, ethanol has gone from panacea to pariah in the eyes of some. The critics, which include industries hurt when the price of corn rises, blame ethanol for pushing up food prices, question its environmental bona fides and dispute how much it really helps reduce the need for oil....MUCH MORE
HT: the WSJ's Energy Roundup

From the Ottawa Citizen:
Corn-based ethanol burns U.S. investors

From LiveScience:
Whatever Happened to Biodiesel?

However, from the Dakota Farmer:
Best Of Times Now; Better Times Coming

If you thought 2007 was a great year for growing corn and soybeans, just wait until you see what’s coming."

That’s advice from Steve Johnson, Iowa State University farm and ag business management specialist who is barnstorming across South Dakota this week talking to corn growers. Johnson is keynoting the "Growing Forward" seminars sponsored by Farm Credit Services and the South Dakota Corn Growers Association in Sioux Falls, Watertown, Aberdeen, Huron and Yankton.

"When was the best year ever for net farm income in American agriculture?" he asked more than 200 farmers who turned out for the meeting in Watertown Monday night. "It was 2007. We had record net farm income. You are living the best year ever in agriculture."

Johnson sees good times ahead – especially for row crop producers – despite a sharp rise in costs.

Crop input cost have soared, but so has income potential, he says.

You stand to make $100 per acre from corn and $60 per acre from soybeans in 2008 – even after paying more for fertilizer, seed, land and all other inputs....MORE