Businessweek writes that one of the economic effects of the increasing demand for Ethanol in the US is an increase in farm land prices. Where once corn farming was looked at as a low income generating source of livelihood that was heavily subsidized by the government, it is now seen as a viable venture due to the huge demand of feedstock for the production of biofuels that have driven up the prices of corn as well as the associated land value of the farms they are harvested from.
Article here, plus list of cities in the US that have the highest land value in farm lots. here
Category: Bioethanol
April 20th, 2007 at 11:46 am
The Businessweek article should have gone a step further to highlight that numerous us Agri-Business firms are snapping up land in Brazil’s soy and wheat plains states. Free markets see capital heading in the direction of the highest return, and the alternative energy sector should be no exception in rendering the best scenario for the American and Global energy consumers.
April 20th, 2007 at 11:08 pm
It looks like the logical thing to do. Outsourcing one’s production to someplace where they can get it cheaper. I hope they don’t take “Too” much advantage however of the cheaper locations and remember to spread the wealth to their host communities