Moen's study used actual domestic grain prices and not
world market prices. If the actual world market price for
wheat (0.18 $ kg -I, January 1. 1997) had been used, wheat
3The reason for higher gasoline prices is a state regulation requiring
10% ethanol in gasoline.
would still have been the best alternative in the short run. In
the long run wheat might also have been the best alternative
if structural changes in agriculture had taken place, making
large-scale growing of wheat possible. Energy forests might
compete if wheat yields are low, but then traditional forestry
easily gives higher land rents (Moen, 1995, see also Sedjo,
1997 this volume).