What do you really know about corn and it’s affect on today’s economy? Since the thought of going “green” late last year, corn has been one of the main components and has steadily affected the our nations and world’s economy. Corn is a major staple for everything in agriculture and things related to it. It’s a primary feedstock for livestock and poultry, thus it is now consumed in high amounts by the new production of ethanol. 
This has caused a trickle down effect by raising the average price of milk and its bi-products, which include crème, butter, cheese, etc., Ethanol production requires many bushels of corn which were earmarked for livestock as feed. To combat this, more savvy growers may allocate more acreage towards the corn, or try and get an extra growing season by utilizing a 60-day corn invented by Pima Indian tribe of Arizona, compared to the traditional 90 day corn.
This has caused a trickle down effect by raising the average price of milk and its bi-products, which include crème, butter, cheese, etc., Ethanol production requires many bushels of corn which were earmarked for livestock as feed. To combat this, more savvy growers may allocate more acreage towards the corn, or try and get an extra growing season by utilizing a 60-day corn invented by Pima Indian tribe of Arizona, compared to the traditional 90 day corn. What does this mean for the consumer and the economy? You will soon notice an increase in price of your Starbuck’s coffee, Wendy’s hamburgers, and Dannon yogurt all due to the new consumption of corn. These companies in-turn have cut their earnings forecasts for the quarter amid the higher that average costs of their ingredients used to make their goods. Their shareholders will notice a lower than average return on their investment. Some in the short run may panic and cash in their shares and look for other investments.
The auto industry, which will be a bigger beneficiary from going “green”, should see higher revenue when their “green” products hit the market. No doubt that they will be expensive, but with the push for lower consumption of fossil fuels and the certain tax break given to the consumer as witnessed over the years by buying more energy efficient cars, should make for an interesting next couple of years.
The auto industry, which will be a bigger beneficiary from going “green”, should see higher revenue when their “green” products hit the market. No doubt that they will be expensive, but with the push for lower consumption of fossil fuels and the certain tax break given to the consumer as witnessed over the years by buying more energy efficient cars, should make for an interesting next couple of years.
2 comments:
I thought you were going to send a brother some of this to post on NottHeads?? I may be from the South but I like corn too, it not just a Midwest treat!!
Well said.
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