Corn and Ethanol, Research Paper Example

Corn and Ethanol: The Factors Affecting the Connection of Both Industries

Introduction

The corn production industry is one of the most beneficial industries in the United States at the entrant of the industrial era. At present, the challenge of using corn as the alternative source of fuel is being given particular attention to. It has been understood through research that corn [processed into becoming a relative source of industrial fuel and power] could become any nation’s take in the approach to developing a new source of energy apart from the actual source of fuel-energy which is currently controlled by the middle-eastern nations. Well-developed nations like that of the United States have enough resources needed to develop such source of alternative energy. Nevertheless, the complete assumption of whether or not this source of alternative fuel could help in the production of such source of energy remains a puzzle for most developers.

One specific issue to consider is the balance of the economic value that this alternative fuel insists in the nation’s capacity to produce such energy from the current resource available for use. There are distinct adjustments that need to be given way if good results are to be expected from the operations. Within the context of this document-presentation, a focus on some of the issues that could be included in determining how the corn industry affects the ethanol industry and vice versa shall be accounted for.

Issues to Consider

In this section, five particular issues connecting the corn industry and the ethanol industry shall be given response to. Through research and referenced resources, these issues shall be given particular attention to, especially as they define the practical economic value to which the corn industry is dependent upon and whether or not it is suffice enough to support the supposedly growing industry of ethanol fuel production.

How does supply and demand affect prices in the market?

Corn, is of course first and foremost a food source. Relatively, giving attention to the need of harvested corn to be separated with regards the ways it would be used shall present a challenge to local growers who are aiming to produce [merely to support the food-needs of the community they are included in]. Noticeably, it could be understood that with such creation of an alternative source of demand for such product, the need to pick up the production procedure taken into account by local growers ought to be adjusted accordingly. How could this be accomplished?

Perhaps the creation of a new sense of development on how corn production could be improved could help well in redefining the condition by which local growers are assisted to accomplish the expected rate of produce that they ought to have especially in relation to the condition of making a distinct sense of effect on how they would be able to contribute to the increased production of ethanol fuel.

However, corn production follows a particular series of time-definition. This challenge then puts pressure on developers and agricultural enthusiasts to create possibilities of increased production and harvest. With such demand increasing in rate, pricing control would also adjust accordingly especially when it comes to making a mark on the profit that would suffice the efforts and adjustments that local growers are to put forth for this particular development.

The effects of different market structures on supply

While the current industry of corn production [in the United States] majorly contributes corn product for ethanol production in the US only, it is expected that if other countries are to develop a faster process of creating possibilities of producing ethanol fuels as an alternative source of energy, the need to prepare to face different market structures [especially in the international scale] ought to be given attention to.

How is supply and demand affected by the labor market?

Who are to produce the corn resource? At least 78% of the corn growers come from the local homeowners who use corn production as the main source of their financial needs. Supporting their needs in developing a more effective sense of handling the pressure of producing more could actually create a much acceptable process of creating corn-sustainability among local growers. Large companies that invest in agriculture has great control on the process as well; nevertheless, it still depends on how much labor force is willing to support the adjustment that the success of the corn industry in supporting ethanol production would fully depend upon.

Effects of industry-connection on economic growth

With the collaborative function of local corn producers with the government [which is expected to provide the needed support of this sector of the economy, along with the cooperation of the ethanol researchers and producers, the country’s economic growth depending on the creation of ethanol fuel could be strongly expected. Nevertheless, as noted, complete cooperation is necessary. The government plays a great role in making such connection sturdy especially in facing technical challenges related to the production increase in making corn resources readily available for use in both sectors where it is needed [the food industry and the ethanol industry].

Economic Challenges to Overcome

Motivating producers to do something about the need to support the growing rate of demand for their product is a necessary challenge to face. Relative to this issue, it is then expected that empowering the local producers through orienting them into taking the new role they have to take into account could help well. Making them realize the importance of their existence as the base source of strength for the establishment of the foundation of the ethanol industry, it is most likely that the process of cooperation between industries could be better established.

Summary

With the issues discussed within the context of this research, it could be understood that full control of the corn production industries would have a great impact on the creation of a new and properly founded industry of ethanol production. At present, there are still several controversies that questions that capacity of the corn industry to support the ethanol production procedures. Noticeably though, as noted in the discussion, the need for the involved parties to be grow a concentrated attention towards the condition of development that the connected industries ought to be fully engaged in shall be the base source of success for the operation.

In relation to economic impact of the said structural connection between industries, the effect would be dependent on how much local households [mainly, the local producers] are supported with the duties they have to the connecting industries. Giving them incentives and the proper source of assistance, these local producers might just be able to accept the point of empowerment they need to push through and be able to give enough for to support ethanol production which will obviously increase the rate of national profit later on.

Conclusion

The modern world is continuously developing and somehow, the creation of alternative sources of energy is making a great impact on the desire of every national economy to make a name in the international trading systems. With the Middle Eastern countries holding the control over such matter, it could not be denied that other well-developed nations would want to find some better control on such industry. Ethanol, an established alternative source of energy would actually create a more extensive source of income for well-developed nations such as the United States. Nevertheless, at present, the industry’s not-so-full-blown capacity to produce proper profit still needs to be developed. It is only through the process of supporting the local producers of corn that such desire for success could be achieved. Relatively, it could be understood that the microeconomics principles intend to empower the most basic unit of economic strength involved in the operation. As presented though, the collaborative connection of involved parties into the situation; this is what would make the operations more effective and properly established on good assumptions of development.   The world is all ready for the production and creation of a new source of energy; however, before such matter happens, empowering the most basic units of the system such as the local corn producers ought to be properly helped first before any good result could be accomplished.

Works Cited

Fortenberry, R .(2008). The Effect of Ethanol Production on the U.S. National Corn Price. University of Wisconsin-Madison Department of Agricultural & Applied Economics. https://www.aae.wisc.edu/pubs/sps/pdf/stpap523.pdf. (Retrieved on July 28, 2015).

Fargione; Hill, J.; Tilman, D.; Polasky, S.; Hawthorne, P. et al. (29 February 2008). “Land Clearing and the Biofuel Carbon Debt“. Science 319 (5867): 1235–1238.

Goettemoeller, Jeffrey; Adrian Goettemoeller (2007). Sustainable Ethanol: Biofuels, Biorefineries, Cellulosic Biomass, Flex-Fuel Vehicles, and Sustainable Farming for Energy Independence. Prairie Oak Publishing, Maryville, Missouri. p. 42.

Timothy Searchinger et al. (29 February 2008). “Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change”. Science 319 (5867): 1238–1240.