Ethanol Enjoys Boom Despite Questions About Its Future
Cattlenetwork.com
ST. LOUIS (AP)–Corn-and-soybean farmer John Adams considered the pitch too good to pass up.
The 58-year-old Adams, who works 950 acres in central Illinois, didn’t immediately join the farmer cooperatives pooling together to build a 100-million-gallon-a-year ethanol plant. But when he dropped by an informational meeting a few months ago, he had to have a piece.
“I was impressed,” he recalled. “I had to do a lot of thinking about where the ethanol market was and where I think it’s going.”
Ethanol, for decades largely an afterthought in the global fuels market, is in the midst of a booming renaissance, despite a host of questions.
It is a hot topic from agribusiness boardrooms to Midwestern diners to world capitals including Washington. President George W. Bush says the fuel additive distilled from mashed and fermented grain is a cheap-and-easy alternative to high-priced foreign oil, and some say it’s already been an economic boon for moribund rural stretches.
Yet skeptics wonder if the rush to ethanol makes sense given the murky outlook for demand. They worry, too, about ethanol’s fuel efficiency – lower than traditional gasoline – and its effects on both the environment and food prices as corn chews up more farmland.
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