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May. 26, 2008

PermalinkPermalink 02:17:28 pm , by Ally Klimkoski Email , 846 words, 1904 views English (US)

Corn-fused

For the past few weeks news sources have talked about the dangerous influence alternative fuels have on our cost of food.

“The recent rise in corn prices – almost 70 percent in the past six months –caused by the increased demand for ethanol biofuel has come much sooner than many agriculture economists had expected. . . And that increase, says Marshall Martin, an agriculture economist at Purdue University, “is the main driver behind the price increase for corn.”

No disrespect to Marshall Martin, but the price of corn isn’t quite a simple as blaming it all on biofuels.

I spoke with Jim Martin (no relation to Marshall) who is on the Federal Technical Advisory Committee for Biomass Research and Development, and he confirmed that blaming it all on ethanol neglects a number of other factors that don’t always fit into a 30 second analysis.

According to Jim Martin, in 2007 the USDA reported that the US produced over 13 billion bushels of corn, the biggest corn crop ever.

“That was 2.5 billion bushels more than in 2006. In the same year, 2007, demand for corn to make ethanol went up by a billion bushels, increasing supply over and above ethanol demand, by about a billion and a half more bushels in the US than the year before. Normally that would create a surplus and prices would have fallen. They did fall for a while in late 2007, but have bounced right back up…

“Ethanol was not the only thing driving up demand. Corn exports soared in 2007 and remain very strong. Demand for corn for feeding animals is also increasing, creating more meat and dairy to feed people. Even production of high fructose corn syrup increased, the biggest direct food use of corn increased.

“What is happening to all that extra food? Americans are eating more of it, but it is also being exported at record rates. Growing economies like China and India are buying US-produced grain, meat and dairy products at record rates. That demand is pushing up prices in the US. But the funny thing is prices in many other parts of the world are not increasing as rapidly.” (emphasis mine).

At the same time fuel prices are driving up costs because transportation of products is over $4 a gallon for truck diesel. Last year, for example, the cost of coffee, milk, and whipped cream all went up so much that major coffee shop chain Starbucks was forced to raise its prices. And we don’t even use coffee or whipped cream to fuel our cars.

This is causing trouble beyond coffee and popcorn, as Oklahoma Horizon reports, it influences things like pizza as well.

Jim Martin attributes these price spikes in large part to a weak dollar:

“As the value of the dollar falls against other currencies, US produced goods become cheaper and prices of imported goods increase. World prices for commodities increase in dollars but may not rise or at most increase less in stronger currencies. That is just what has happened in other agricultural commodities.

“The prices of coffee and cocoa have increased by about the same percentage as corn and soybeans. We don’t make biofuels out of coffee and world production has not gone down. The price has gone up almost 70% in US dollars, but in Columbia or Brazil coffee prices are up only slightly.”

He agrees there are a few exceptions like wheat and rice that have fallen globally due to poor crops, but on the whole demand grows as global financial stability grows and more people can afford food.

So, the sort answer is yes, ethanol is raising the price of our food. Martin quotes economist estimations anywhere from 5-10 percent. Only 5-10 percent of our food cost is impacted by ethanol. This is against a total rise of over 80 percent in two years.

The greatest influence in his mind is the devaluing of our US currency. According to Martin, currencies lose value when other countries hold an increasing amount of debt against another country.

“Our record federal and trade deficits in the US are weakening the strength of the dollar. Rising exports of agricultural commodities like corn, soybeans and wheat help balance our cost of imports of foreign oil. They are not doing much to correct the problem of rising deficit spending by the federal government, however. Some day we will have to pay that back. Until then, we pay the cost in weak dollars every time we fill up with gas or buy a carton of milk.”

For more check out the International Food Policy Research Institute, specifically their presentation on Food Prices, Biofuels, and Climate Change.

In the end, don’t believe the hype about stopping the use of biofuels or alternative fuels because we’re all going to starve. Similarly, don’t believe the misnomer that we don’t have enough corn to use for ethanol. Or that corn is the only biofuel we could be using. We are just beginning to skim the surface of alternative fuels and we are lucky that with further study and work, the coming years will yield more opportunities and help us lower our cost of fuel.

Apr. 12, 2008

PermalinkPermalink 02:18:43 pm , by Ally Klimkoski Email , 819 words, 485 views English (US)

Unexplored Connections : Ally Klimkoski

CREATION CARE
Early this year I traveled to some of the early primary states to learn more about different groups involved in the presidential primary elections. One was South Carolina, where I drive from Charleston to Columbia and everywhere in between and back again asking different kinds of people what mattered most to them.

I interviewed Rev. Don Flowers, head pastor of Providence Baptist Church just outside of Charleston on Daniel Island. The good Rev and his family treated me to lunch and told me about a series of sermons he had done called Faith at the Ballot Box, and his first addressed the climate crisis and as Christians how we can care better for God's creation.

"This morning we finished our prayer ... thy kingdom come, thy will be done, on earth as it is in heaven. ... Thy Kingdom come, oh God. It is a reminder to us this morning that we pay our allegiance not to the Republican party or the Democratic party or the United States of America. We come here professing that our primary citizenship is in the Kingdom of God.... that should form the very core of who we are as persons, who we are as citizens, and who we are as voters. We will hear plenty of partisan answers to issues, but what about biblical answers? What about faith answers. What does our faith our scriptures, our Bible, have to say about the issues we face in this election."

Rev. Flowers goes on to discuss a drive he made to Atlanta to pick up his daughter at the airport. She had been overseas for a time and when he dropped her off he remembered people water-skiing on a local lake, but as he drove by months later the lake had only small pools of water surrounded by mud flats. He brings up a story he heard about Bangkok, Thailand which was build originally on marsh lands - much like the city of New Orleans. The city is now rapidly sinking at a rate of 4 inches a year while the outside waters rise around them. In just 15 years - the entire city will be gone.

And of course we all know why. As Rev. Flowers says "we are cooking our planet."

The Evangelical Environmental Network a state away from Rev. Flower's Church addresses specifically what the Lord's word says about creation care and being good stewards of our lands.

"The environment is actually a part of God's creation - of which humanity is also a part. . . As many of the scriptures below will demonstrate, the Bible teaches that both "nature" or "the environment" and humanity are part of creation.

Both are inextricably linked to one another, have been ever since God formed us from the earth (Gen. 2:7; 3:19; Ps. 104:27-30), and will continue to be in God's future when we will exist as resurrected bodies on a new earth (I Cor. 15:35-44; Rom. 8:19-23; Isa. 65:17; Rev. 21:1).

In other words, humanity and the rest of creation are part of all of creation. Therefore, creation-care does not just mean caring for "nature," nor does it just mean caring for humanity; it means caring for both. A biblical creation-care ethic is a holistic ethic. "

I Cor. 10:26 similarly says "'The earth is the Lord's, and everything in it," and yet today we disrespect the Lord our God by trashing that which he has created and blessed us with. The President mocks and ignores the suffering of our earth calling it "climate change." As if global warming was merely an inconvenience that a public relations firm can make go away.

With those waters depleted in rivers and lakes we see the warming continue as it melts and displaces those waters rising higher and higher. Which means the entire city of Bangkok, over 9 million people, will need to be relocated. Where do they go? How do we help 9 million of our brothers and sisters? Surly, this task cannot be single handily taken on by one episode of American Idol Gives Back.

Rev. Flowers says this is the question of stewardship and to whom does our world really belong. "Is it our plaything to be used as we want it to? For too long we have treated it that way. We have done with the earth what we want because it belong to us, but scripture lessons this morning give us a different answer. 'In the beginning God created the heaves and the earth.' In the beginning God created. . . this was His world. We are merely the stewards... the caretakers."

He began his sermon by remind us how important this election is for our country, for our world, and for us. I would add that it is important for all people of faith to accept our short comings in caring for the gifts we were given and instead embrace those who offer us solutions. And in saving our world we ourselves shall also be saved.

Peace be with you.

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