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I just got back from Ill. They are paying anywhere from $3.53 to $3.73 a gal for 10% ethanol. Just think about this. It takes 3 gals of water to make 1 gal of ethanol. It sure isn't helping the drought situation we are having.
Drought indeed. Maybe some corn futures to counter what may be a very costly summer season for farmers. Corn prices are UP 65% in the last year alone. I live about 60 M South of Chicago and the water tables are dropping like a rock with this latest 10 day 85 plus degree weather. Doesn't look good for sure. NO rain in sight either.
Corn is growing good here for now. I think the few squirts we've in the last week or two are keeping the young plants healthy. We'll for sure start to fell it though if something doesn't show quick.
Where you located Scott? We missed the last rain producer last week here. They got 2" or more up towards Wisconsin though, which should help them this week when we're baking.
There is a recent Ag Dept. report linking a rise in non-corn crop prices (e.g. soybean) as farmers shift to the more lucrative corn to fuel the ethanol run. So as corn-based ethanol gains popularity, we shall feel it at the grocery. I did half of my part by trading in a 4-Runner 4.7l V8 for a Civic, but until "they" make a complete transition to switchgrass-based ethanol (or whatever it is), I can't get on board with that movement.
Also, it was my understanding that it takes a lot more than 3 gallons of water to produce 1 gallon of ethanol. A quick web search indicates that the 3:1 is only at the ethanol refinery; this does not include the amount of water required to grow the crops. Don't get me wrong: I agree that Americans need to wean themselves off oil, but not at any cost.
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