Rising oil prices, energy security, and global warming concerns have contributed to the current hype over biofuels. With both prices and demand for oil likely to continue rising, biofuels are being presented as the way to curb greenhouse gas emissions and to develop homegrown energy that reduces U.S. dependence on foreign oil.

But hold on a minute: It turns out that corn-based ethanol is not necessarily the silver bullet everyone is seeking. To start with, even if we dedicated the entire U.S. corn crop to ethanol, it would displace only a small share of gasoline demand. Thus, we still would depend on foreign oil.

Next, we move on to the fact that ethanol is, sadly, not the solution to global warming. Ethanol tailpipe emissions can reduce some greenhouse gases, but also can increase levels of others. As you may have guessed, corn farming and ethanol production are not emissions free. When fossil fuels are used to power ethanol refineries, they can lead to higher greenhouse gas emissions than the fossil fuel that ethanol is supposed to replace.  Conversely, a modest increases in auto fuel efficiency standards of even one mile per gallon for all cars and light trucks, such as those passed by the Senate last month, could cut petroleum consumption by more than all alternative fuels and replacement fuels combined.

And, last but not least, ethanol is not the solution to revitalizing rural America. Although the rise in corn prices is certainly exciting to farmers, the ethanol industry’s growth could further concentrate agribusiness, which drains the economic health out of rural communities. 

Hang on to your piggy bank, folks. It's gonna be a long road ahead.