With all the talk of Ethanol as an alternative fuel source many farmers have reverted to producing corn in place of other crops such as soybean and cotton. This in turn could create a rise in cotton prices for such things as clothing as well as anything containing soybean products and/or byproducts. Also with many farmers opting to sell their corn crops specifically for the production of ethanol how might that affect the price of corn to the consumer for the table as well as feed for livestock?
Do you think prices will increase with stronger demand and less productivity?
Well, if you haven't noticed, for example the cost of milk is much higher now. A gallon is going for about $3.39 at some stores and it is all due to the cost of fuel (when distributing dairy products) plus the corn hike due to its use as alternative fuel. I personally don't think that farmers will necessarily stop producing cotton and other things in order to start producing corn. Each farmer has his own market.
Reply:maybe not, the farmer will get a surplus from the government to grow more corn and use up more fields and there keep the price at a nice price but if the union get to the mix then maybe the price will go up.
Reply:yes
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