Search
Better Farming OntarioBetter PorkBetter Farming Prairies

Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


Grain Farmers say food/ethanol debate over

Tuesday, April 26, 2011

by BETTER FARMING STAFF

At a time when the United Nations Food and Agriculture Organization tells us there are 925 million undernourished people in the world, a news release from the Grain Farmers of Ontario says a new study they commissioned “should put an end to the ongoing debate of whether the grain we grow should be used for food or fuel” arguing “we can and should do both.”

The report’s author, Dr. Terry Daynard, notes he didn’t write the news release although he says he doesn’t disagree with it. “We wrote the report but the Grain Farmers who received it wrote the release, so all I can do is comment on the report,” Daynard said.

“What we were charged to do,” he said, “was to examine the whole situation, what are the environmental benefits of ethanol and biofuels which is mostly ethanol in Canada anyway and what’s the implications to grain prices and food prices and so on,” he said, adding he looked to existing reports and went with reports he believed were the most credible.

Daynard, a Guelph area farmer with a Ph.D. in crop production, agrees that ethanol production has increased the price of corn. He points out that was the reason farmers supported ethanol production in the first place, to create an additional market and increase the price. However, he maintains ethanol accounts for 20 to 40 per cent of the price spike in 2008 and about the same in 2011. Panic buying of wheat and rice particularly and hoarding, he said, have been the big drivers.

“When you work that through what that means in food prices it turns out that at its peak in 2008 that ethanol was probably responsible for about 0.5 to 0. 8 per cent price increase in food,” Daynard said. While that increase may have added $35 to $60 to food bills for average Canadian families, the savings at the pump amounted to $100 to $180. The reason for that is that ethanol added five per cent to world gasoline supply causing a damping effect on prices that the market would otherwise charge. “A small change in supply can have a large effect in gasoline prices,” he said.

Daynard said the real tragedy is Africa where most of the arable land is underused and where farming methods have not changed in generations. “If Africa and some of the other countries got more help,” he said, “they would be fully capable of feeding themselves and that’s the solution for them, not to ship it all from here.”

Daynard said studies show Canadians earn enough disposable income to pay for their annual food bill by Feb. 12. “When do they earn enough money to pay for the farmer’s share of that food?” he asked. “It comes out to about the middle of the day Jan. 9. If you took into account this maximum effect of ethanol on corn pricing at the peak of 2008 and the peak of 2011, it turns out it would change from about noon to 4 p.m.” BF
 

Current Issue

March 2025

Better Farming Magazine

Farms.com Breaking News

Farmer Planting Decisions for 2025 Taking Shape

Thursday, March 13, 2025

As farmers across Canada prepare for the 2025 crop year, Statistics Canada says their planting decisions reflect a complex mix of factors including moisture conditions, crop rotation considerations, and market prices. Nationally, farmers are expected to plant more wheat, corn for... Read this article online

Grain Growers of Sounding the Alarm Over U.S. Tariffs

Monday, March 10, 2025

Not surprisingly, the Grain Growers of Canada (GGC) is raising concerns over the United States' decision to impose a 25% tariff on Canadian grain and grain products, a move that could jeopardize the livelihoods of family-run grain farms and lead to higher food prices for American... Read this article online

International Women’s Day – Angela Cammaert

Wednesday, March 5, 2025

As International Women’s Day approaches on March 8, Farms.com is asking women in ag about what they’d tell their younger selves about being a farmer, to give a piece of advice to young women entering the ag sector, and to highlight a woman in agriculture they consider a mentor or... Read this article online

Keep Yours Toes Warm in Every Season with the Agro 897

Friday, February 28, 2025

BY: Zahra Sadiq Say goodbye to leaky boots that don’t keep you warm, the Lemigo Agro 897 offers durable waterproof protection, insulation for all-day comfort, and a sturdy design perfect for tackling tough farm tasks in any weather. Lemigo is a family business, 26 years strong, that... Read this article online

BF logo

It's farming. And it's better.

 

a Farms.com Company

Subscriptions

Subscriber inquiries, change of address, or USA and international orders, please email: subscriptions@betterfarming.com or call 888-248-4893 x 281.


Article Ideas & Media Releases

Have a story idea or media release? If you want coverage of an ag issue, trend, or company news, please email us.

Follow us on Social Media

 

Sign up to a Farms.com Newsletter

 

DisclaimerPrivacy Policy2025 ©AgMedia Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Back To Top