Biofuel Oil Corn
America is considering the use of corn to be a priority food or for biofuels. Along with the demands of environmental preservation, United to increase production of biofuels with the utilization of corn. Increased use of corn for biofuels was an impact on decreasing supply to support agriculture and animal husbandry.
Corn, the mainstay of America to produce biofuels. U.S. corn production is sucked into biofuels refinery. But for this to be a need to farm corn and feed ingredients. American cows are bred with the provision of long corn as cattle feed. Therefore, when the production of corn turned into biofuel feedstock, U.S. corn prices rise, and the cattle ranchers affected.
The tendency that there is fuel oil rose sharply, so the need for biofuels also go up. The increase was by itself a cause of rising corn prices. The other side of the rising price of corn in America is the number of American farmers who switched from planting soy to planting corn. Soybean production decreases, its price to rise. It is said that this is one of the causes soybean prices go up in Indonesia, because Indonesia has been importing soybeans from the United States.
Process Corn Biofuels
Back about the choice of priorities for biofuels or for food stocks. The increase in corn prices caused the U.S. to reduce cattle ranchers. Of course as a result the price of meat to rise. For information, prices of agricultural commodities in the United States is determined by the balance of "supply-demand", so if the supply becomes depleted then consequently prices rose.
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