The affects of rising oil and gas prices can be seen most everywhere in the United States: decreased school field trips, tighter family budgets, higher food costs, etc. My fellow classmate discusses his thoughts on the subject in his blog, Politics and Hunger. However, I greatly disagree with his opinion regarding biofuels influence on the rising cost of food in the United States.
First hand experience with my family’s farm and ranch and hometown’s new biofuel plant has led me to believe otherwise. As gas prices increase, my family and other farm and ranchers (big and small) across the US adjust their goods’ prices accordingly. Farmers and ranchers can be both producers and consumers of ethanol. The opportunity to increase their business capacity via the need for biofuels (ethanol) will help many struggling US farmers. In addition, the use of ethanol may decrease their fuel expenses. This is not to say that natural occurrences such as droughts will not continue to affect the cost of both crops and biofuels, but that the added use of corn as fuel will aid in the farming and ranching economy and therefore affect the American consumer (hopefully in a positive way). As Ruben mentioned, “the Bush administration said that the ethanol is playing a very small role in rising food prices.” The Bush Administration is lacking credibility in its last days, but I do not believe they are not mistaken here. If anything biofuels will help ease the fuel expenses of farmers and ranchers and all additional expenses to bring their products to consumers.
In addition, as gas prices continue to sky rocket, I ask –Who continues to make large profits? The oil companies! Their fear of increased crude oil is leading them to prepare for even higher prices, thus raising the price at the pump even when unnecessary. It is the elite few that continue drive family budget in disarray.
No comments:
Post a Comment