The Folly of Turning Water into Fuel

With corn selling at record-high prices, Steve Albracht expects to have no trouble paying his electric bills this year. Albracht irrigates 1,000 acres of corn near the town of Hart in the Texas Panhandle and expects to shell out $180 to $240 per acre to run his pumps through the spring and summer. "In this area," says Albracht, "the water table has dropped, but nobody's cutting back on watering yet. There's still plenty down there."

Albracht won the 2005 National Corn Yield Contest in the "irrigated" category, producing a whopping 352 bushels per acre. In a region that gets an average of less than 18 inches of rain annually, Albracht and his neighbors apply anywhere from 28 inches to more than 3 feet of water to their corn each year. With the prospect of a highly profitable harvest, Albracht says he can afford to water generously this year. And he'll need to, he says, "because it's been a dry winter."

For once, times are good in the High Plains. Corn and other grains are selling like precious metals, and there is every reason to believe that prices will stay high. At the heart of the boom is the U.S. government's decision to rely on corn-based ethanol to meet a big part of the nation's demand for "renewable" fuels.

Most recent controversy over ethanol has focused on the its poor energy return; in growing corn and turning it into ethanol, you have to burn three calories to get four. With prices of fuel and other inputs rising fast, corn farmers won't be getting rich (except for those who happen to have oil wells on their property.) But selling their corn for such high prices, they can afford to sow more acres and burn more propane, diesel or electricity to pump more water than ever. A torrent of cash will be flowing through the nation's corn-growing regions, but the biggest price will be paid in water.

Thirst for corn

To hear agribusiness boosters and politicians tell it, corn-based ethanol is a miraculous solution to the nation's hunger for liquid fuels. But as miracles go, it's not all that impressive. When Jesus, according to Biblical reports, converted approximately 150 gallons of water into an equivalent quantity of wine, his conversion rate was about a cup of ethanol per gallon of water invested (given the typical alcohol content of wine). Compare that to current processes that use irrigated corn as their carbon source and get less than a teaspoon of ethanol for each gallon of water consumed.

In dry areas of the High Plains where irrigation is the most crucial to corn production and the ethanol-to-water ratio even lower, agriculture is dependent on a one-time drawing of groundwater that hasn't seen daylight for 11,000 years or more. The vast Ogallala aquifer, stretching from not far south of Steve Albracht's Texas farm all the way up into South Dakota, is being mined at a rate that, in some areas, will drain it sometime in the relatively near future -- at least before the oil wells of the Persian Gulf run dry.

The Ogallala was trapped underneath the High Plains around the time of the last ice age. The formation holds enough ancient water to fill Lake Huron, the second-greatest of the Great Lakes -- or at least it did before being exploited for agriculture. In the High Plains, raising a single bushel of irrigated corn slurps up 2,000 to 3,000 gallons of water, and more corn than ever is being raised there.

With national corn acreage having shot up 15 percent just from 2006 to 2007, pressure on water resources is increasing. The U.S. Department of Agriculture projects that the land area sown to corn will remain at historically high levels of 90 million acres or more through at least 2017. The incentive: the price, which has rocketed up from around $2.00 to more than $5.00 per bushel. And USDA forecasters now see high corn prices as near-permanent.