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how would american farmers benefit from ethanol production

by Emerson Jerde Published 2 years ago Updated 1 year ago
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The boom was good for rural communities as ethanol companies built plants and hired local workers. It was also good for farmers, and corn prices started to climb. The price of corn climbed to nearly $7 per bushel within the decade, and land prices increased with it.Apr 24, 2018

Full Answer

Why does the US sell ethanol to other countries?

The U.S. makes about 58 percent of the world’s ethanol, according to the Renewable Fuels Association, so selling to other countries is one way to grow the market. Making fuel with higher ethanol blends is another.

Is ethanol a bridge to energy independence?

President George W. Bush and his congressional allies sold the American public on ethanol as a bridge to energy independence. More than a decade later, the time has come to ask where that bridge is going.

Is cellulosic ethanol the next big breakthrough in electric vehicles?

Researchers at Georgetown University estimate that more than 90% of all vehicles in the United States could be electric within 20 years. Cellulosic ethanol, which has been produced from cellulose rather than from the plant’s kernel, has been held up as the next big breakthrough in ethanol technology.

Why don’t farmers plan for the future?

One factor contributing to the unwillingness to plan for the future is the strong alliance between agribusiness monopolies that have an incentive to sell more corn and other organizations that stand to financially gain from these corporations selling more seed.

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What are the pros of producing ethanol?

Minimizes Dependence on Fossil Fuels Embracing ethanol fuel can save a country a lot of money that can be plowed back into the economy. Since ethanol is domestically produced, from domestically grown crops, it helps reduce dependence on foreign oil and greenhouse gas emissions.

Why is ethanol important to agriculture?

Ethanol takes on added importance as an alternative use for corn in times of low export demand. Ethanol production also increases the supply of high- protein animal feeds from the byproducts.

Why Is ethanol good for the American economy?

Ethanol production creates jobs in rural areas where employment opportunities are needed. According to the Renewable Fuels Association, ethanol production in 2020 accounted for more than 62,000 direct jobs across the country, $35 billion to the gross domestic product, and $19 billion in household income.

How does ethanol affect agriculture?

The ethanol sector creates new demand for the crops that serve as feedstocks. This raises the production and prices of these crops, which leads to growth in revenues. Since agricultural capital is sector-specific, the feedstock sectors draw in more land and labor to meet the growing demand.

What are the pros and cons of ethanol?

Ethanol. Pros: Reduces demand for foreign oil, low emissions, high octane, and can potentially be produced from waste materials; existing cars can use 10-percent blends (called E10), and more than 8 million cars already on the road can use E85. Cons: Twenty-five percent lower fuel economy on E85 than gasoline.

How is ethanol used in farming?

One byproduct of ethanol is distillers grain, which can be used in either a wet or dried form as a high protein livestock feed. With these distillers grains less readily available, many ranchers and livestock operations will pivot, too, presumably, to soybean meal.

How does ethanol benefit the environment?

Better for the Environment For example, ethanol-fueled vehicles produce lower carbon dioxide emissions. E85, ethanol-gasoline blends that contain 51% to 83% ethanol,1 also has fewer volatile components than gasoline, which means fewer gas emissions from evaporation.

Is ethanol better for the environment?

So the reality is, ethanol is actually quite good for the environment (much better than regular gasoline). And ethanol becomes even more environmentally sustainable 1) as technology enables farmers to continuously improve their conservation efforts and 2) as other aspects of ethanol production become more efficient.

What is ethanol mostly used for?

The primary industrial uses of this aliphatic alcohol are as an intermediate in the production of other chemicals and as a solvent. Ethanol is used in the manufacture of drugs, plastics, lacquers, polishes, plasticizers, and cosmetics.

Does the US use ethanol?

In the U.S, ethanol fuel is mainly used as an oxygenate in gasoline in the form of low-level blends up to 10 percent, and, increasingly, as E85 fuel for flex-fuel vehicles. The U.S. government subsidizes ethanol production.

What are the negative outcomes related to producing ethanol?

In a 2018 report, EPA itself linked corn ethanol production to damaging land use change, air pollution, water pollution, soil erosion, and habitat loss.

How much farmland is used for ethanol?

Every year, US farmers plant around 140,000 square miles of corn, 30% of which is used to produce ethanol. Between 1978 and 2018, the ethanol industry received a variety of subsidies totaling $86 billion dollars, more than both the solar and wind industry combined.

Corn farmers depend on growing ethanol production

Train cars wait at the Poet Biorefining plant in Chancellor, S.D., Monday afternoon, April 23.

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