Ag economist says Tesla is the biggest threat to farming
The chief ag economist for Wells Fargo says Tesla is the biggest threat to farming, “No matter what you set for a blend rate in the United States you can’t force a Tesla owner to buy any ethanol,” says Dr. Michael Swanson who was on the Danforth Plant Science Center ‘Ag Tech Next’ series Tuesday. He was asked if electric vehicle production and increased fuel efficiency standards will impact supply and demand for U.S grains.
Swanson says battery technology improvements are being worked on in labs and that is expected to accelerate interest in electric vehicles, “Ten years from now, battery pack costs will probably be 40-50% of what they are today. They’ll be better technology. You’re simply going to see a wholesale movement into electric vehicles.”
Swanson says with U.S. population growth slowing and U.S. corn yields growing, ethanol has a declining future, “You better find a home for the grain and it better be animal livestock because, otherwise, you have no other option for it.”
Swanson sees a transition to electric vehicles taking place over the next 20 years.