It Is Widely Known That the Rapidly Expanding Corn-Ethanol Industry

question 66

Essay

It is widely known that the rapidly expanding corn-ethanol industry is quickly increasing the price of corn on world markets. Given this, many farmers have begun to grow corn more intensively. For instance, some producers who currently pursue a corn-soybean rotation (planting corn one year and soybeans the next) might shift to a corn-corn-soybean rotation (planting corn two years in a row and then planting soybeans in the third). Continuous production of corn (planting corn every year on the same plot of land) is another possibility. Explain what impact this explosion in the market for corn may have on the market for soybeans. In particular, will those who produce soybeans exclusively be better off, worse off, or unaffected as a result of the increase in corn prices?

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Definitions:

Scientific Advancements

Progress or breakthroughs in the field of science that lead to new knowledge, technologies, or applications.

Core Competency

A defining strength or ability that a company excels at, distinguishing it from competitors and contributing to its success.

Marketplace

An open environment in which goods and services are exchanged between buyers and sellers.