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Old 02-09-2007, 07:01 AM
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rickgthf
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Phydeaux88,

After posting the above I have an additional thought. It is that time year where I review my farming operation and try to make some plans. This past year I made some 1500 gal of BD worth to me $3.00 a gal (spring price 2005). Well, with that 1500 gal I produced about a hundred ton of organic corn, soybeans and wheat. Ironically I just broke even. I would have been better off just to sell the BD and take the money. The conclusion is that food is so underpriced that serious disequilibrum between food and fuel is corrected it is pointless to talk about the effect of biofuels on food prices. Also by my calculations feed grains account for about 12% of the retail price of beef. Remember the supermarket markup for beef is typically 100%, That means the store takes the wholesale price and doubles it for the retail price.
For what it's worth.