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Old 06-11-2007, 01:47 PM
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fabsroman fabsroman is offline
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Join Date: Nov 2001
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GOB,

What you are forgetting is greed and economics. If a farmer can make 4 times as much money growing corn instead of barley with the same amount of work, why would he want to plant barley unless the price of barley is close to that of corn. As the price of corn increases due to high demand for ethanol, there will be less barley produced. With less barley being produced and the same demand for barley, or other crops for that matter, the price of barley and other crops will also increase. It is a simple supply and demand curve. As supply decreases the price will increase and the demand will decrease (i.e., people will not buy as much beer because it costs more).
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