Biden’s corn ethanol action questionable: Corn prices are now higher, food shortages continue

05/04/2022 / By Mary Villareal

The Joe Biden Administration has been trying to “control energy inflation” but all the measures that they have created have been damaging the supply or inflating the price of natural gas, oil and coal on the global economy, with huge impacts on fertilizer prices and food production.

Reports have also been circulating that Biden and his goons have intervened to block the freight rail shipping of fertilizer at a critical time, which means that the effects would be massive by autumn.

CF Industries of Deerfield, Illinois, the largest U.S. supplier of nitrogen fertilizers as well as vital diesel engine additives, issued a press release stating that on April 8, Union Pacific informed them without advance notice that it was mandating certain shippers to reduce the volume of private cars on the railroad, effective immediately.

Union Pacific is one of only four major rail companies that, together, carry some 80 percent of all U.S. agriculture rail freight. CF CEO Tony Will said that the decision by Union Pacific could not come at a worse time for farmers.

“Not only will fertilizer be delayed by these shipping restrictions, but additional fertilizer needed to complete spring applications may be unable to reach farmers at all. By placing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ harvests and increasing the cost of food for consumers,” he said.

The company has made urgent appeals to the Biden Administration, but there had been no positive action so far. (Related: Burning up food prices: More corn going to ethanol production now than food production.)

Biden’s actions worsening crisis

CF Industries is one of only thirty companies that are subject to Union Pacific’s severe measures, which, at the moment, are indefinite. They ship via Union Pacific rail lines, mostly from their Donaldsonville Complex in Louisiana and Port Neal Complex in Iowa, to serve key farm states that include Iowa, Illinois, Kansas, Nebraska, Texas and California.

The ban will effectively limit nitrogen fertilizers such as urea and urea ammonium nitrate as well as diesel exhaust fluid, which is an emissions control product required for diesel trucks to run.

While this is ongoing, the Biden administration also announced a “remedy” for the record-high gasoline pump prices: Washington announced that the Environmental Protection Agency will allow a 50 percent increase in corn-based biodiesel and ethanol fuel mix for the summer — an initiative that is supposed to increase the use of domestically-grown corn-ethanol biofuels.

This will modestly trim gasoline prices by about a dime per gallon at some stations. However, the impact remains small and uncertain as inflation accelerated in recent months.

Secretary Tom Vilsack also claimed that the measure would reduce energy prices and tackle rising consumer prices caused by the Russia-Ukraine war, or the “Putin Price Hike,” as it is now called.

However, the capitalized “Putin Price Hike” is not a direct result of Russia’s actions, but of the Washington Green Energy, which decided to phase out oil and gas. Energy price inflation is expected to rise higher in the coming months, owing to U.S. and E.U. sanctions on the export of Russian oil.

Unfortunately, Biden’s move will remove food production from the food chain as farmlands dedicated to growing corn are set to give out their harvests for biofuels instead.

The passage of the 2007 Renewable Fuel Standards Act, which mandated annually rising targets for the production of corn for ethanol fuel blends, has captured a huge part of the total corn acreage by more than 40 percent in 2015, with a shift that added major price inflation for food, well before the COVID inflation crisis started.

In mandating a significant increase in corn ethanol for fuel at a time when fertilizer prices are astronomical and fertilizer shipping is being blocked by the White House, corn prices are through the roof. (Related: New study finds corn-based ethanol fuel is actually WORSE FOR THE ENVIRONMENT than regular gasoline.)

Moreover, the situation is being aggravated by the Department of Agriculture‘s demands for chicken farmers to kill off millions of chickens due to supposed bird flu infections.

The U.S. food security is under threat like never before, but the Biden Administration’s “Green Agenda” is doing everything it can to make the impact even worse for citizens.

Follow FoodCollapse.com to learn more about the sanctions that are aggravating the ongoing food crisis.

Watch the video below for more information about the ongoing food crisis:

Watch this video and more on The HighWire with Del Bigtree channel on Brighteon.com.