The Bush administration has affirmed its support for ethanol production in the United States, refusing to reduce the ethanol mandate from its current 9 billion gallons. Not a lot of corn is grown in West Virginia, but we produce lots of chickens in the eastern part of the state, and growers will be hurt by rising grain costs.
My (extended) family farmed in Ohio and Indiana, and this rise in corn prices would have been a double edged sword for them. Those that were feeding hogs or milking cows would have seen higher prices, but they were all raising corn for sale, too. However, fertilizer prices are high as a result of oil selling at record levels, so their profit margin isn't as big as you might think.
Friday, August 8, 2008
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