Thursday, February 2, 2012

Grain, livestock tensions



Grain Farmers of Ontario has responded to the George Morris Centre study released earlier this week, denying that ethanol is shorting feed supplies and hurting livestock farmers.

The George Morris Centre said Ontario’s ethanol policies and producers drive up the price of corn and that has forced a reduction in livestock numbers and meat packing.

Grain Farmers of Ontario said nothing about the ethanol-production impact on corn prices, but stuck to feed supply and the benefits of reducing greenhouse gases. And it pleaded for peace among farmers.

That's easy for them to say, given that they have the money and pork and beef farmers have been through a really tough patch.

The George Morris Centre's study quantified how much money the ethanol industry has siphoned out of livestock farming and also noted that it's relatively easy for politicians to use ethanol to ramp up corn prices and production, but a whole lot more difficult to bring about recovery in the livestock and meat-packing industries.

Grain Farmers of Ontario says a third of the corn used to produce ethanol comes back as distillers' grains for livestock rations.

Terry Daynard, one of the best general managers in Ontario agriculture when he headed up the corn producers' association, says that ethanol production in Ontario doesn't really influence feed costs because the border is open to the U.S.  However, ethanol policies on both sides of the border have been responsible for corn price increases.