H3-What effect does the local ethanol plant have on agriculture?

Positives

• Higher price $2.00-10.00 tonne
• Local Infastructure
• livestock food source

Negatives

• monoculture incentives
• traffic on the 401 hauling products back and forth
• higher livestock source
• dependant on political decisions

Do the social benefits of biofuels offset the economic cost to the average consumer?

It is evident that alternative energies, such as biofuel, is the way of the future.  Countries, such as the United States, want to eliminate their foreign dependencies on oil.  The question is, at what cost does this come to the farmer and consumer?

As major oil companies enter this niche market, there are many farmers (especially corn farmers) who will benefit to the increased price of corn from this new demand; but other farmers will struggle as the price of their feed increases, pushing their price up for their commodity on the end user.

If farmers are already having a hard time competing amongst the flood of cheap imports from China, India and Brazil, then there will be further constraints as a rise in biofuels pushes up the price of the average consumer's grocery bill.  As the consumer observes higher cost they will be more inclined to substitute for the cheaper goods.

Will small-medium farmers be pushed out of the market as they face rising constraints or will there be greater benefits from the cheaper means of transportation and cost of production?

How will the rise in prices for agricultural goods impact our exports to foreign countries and what will the impacted farmer do to compensate for the reduction in demand  (keeping in mind that currently Canada is the 4th largest exporter of agriculture in the world)?