COST OF PRODUCTION OF FUEL ETHANOL IN FARM-SIZE PLANTS
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In the past few decades, U.S. agriculture has become increasingly
dependent upon purchased inputs as farmers increased the use of chemicals
and machinery while reducing labor. Dependence on various energy intensive
inputs is currently so great that if supply channels are disrupted,
production suffers greatly. Furthermore, rapid escalation in the prices
of these inputs, coupled with relatively low prices for farm commodities,
has subjected the American farmer to an ever tighter price/cost squeeze.