Corn Essay

592 Words Oct 8th, 2011 3 Pages
Corn America

The demand for corn has greatly increased because of its many new found uses but mainly because it has been discovered that corn can be use as an alternate energy source. This great demand for corn has increased many area of farming and production of corn here and other countries such as Mexico and South America. This great demand has lead to an increase in farmers who are willing to cash in on these cash crops and try to earn a few quick dollars because of the great demand for it. In 2007 Corn farmer saw record profits because famer where getting twice as much for corn as they did in previous years. The same trend continued but farmers dealt with so many obstacle such as weather, bugs and lack of
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This would create and elastic effect on the corn market because the huge demand for corn oil will remain the same but with the discovery corn for energy it has made it a hot commodity and very profitable amongst farmers therefore corn oil would take a back seat for now until other resources can be used to produce energy. These farmers are going to slow down their productions of corn for corn oil and increase the production of corn for energy because it is the more profitable thing to do and its makes perfect business sense. Now the demand for the corn oil remains the same, but the productions for it has slowed greatly if not stopped, this means that farmers and corn producers will need to raise the price of corn for corn products so they will be able to stay on the market longer and have a longer shelf life until another year or harvest comes around.

Birger, j. (2007). The great corn gold rush. CNN Money, Retrieved from http://money.cnn.com/2007/03/29/magazines/fortune/corn_gold_rush.fortune/index.htm

Breamer, J. (2009). Demand for corn and soybeans continue in 2010. High Plains Journal, (53), Retrieved from http://www.hpj.com/archives/2009/dec09/dec28/1228CropOutlookwspeakerpicj.cfm

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