Stop making sense. It makes it harder to make fun of you when you go all liberal on us.Turquoise wrote:
The people running agribusinesses aren't stupid. They know what demand there is for a given crop. It doesn't matter how profitable a crop is compared to others when it comes to demand for food overall.lowing wrote:
Not true, if the forcast predicted bean sprouts selling at 100 dollars a bushel and corn only selling at 25 dollars a bushel. How or why would you suppose corn would be planted without the influence of profit?
Think of it like this... When ethanol demand went up, it did result in more corn being processed for ethanol, which in turn, did drive up the value of corn. However, despite this dramatic rise in value, it did not suddenly cause most farmers to switch over their yields to just corn. Corn may have increased as a share of their production, but they wouldn't simply grow only corn.
Why? Because there's always going to be a lot of demand for other produce. People aren't going to simply eat what's most valuable, not only because of taste, but because if something is more expensive, most people are going to buy less of it. They'll find cheaper alternatives to eat.
This all results in an equilibrium between demand and supply.
It's basic economics man....
I live in the heart of ethanol country in MN. You are very correct that the % of tillable that was planted as corn did go up, but not exponentially so. I think we planted about 15% more acres to corn than the previous several years in 2007 (92.9 Million acres planted as corn). Since then it has been shifting back down a bit (2009=86.5 million acres planted as corn). Overall we are about 3% higher on corn percentage from a decade ago.
"The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation" - Barack Obama (a freshman senator from Illinios)