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Strange Bedfellows Fight Ethanol Subsidies
Reader Actual Reality sends us to Business Week for a tale of the strangest political coalition to be seen in a while — greens, hippies, libertarians, and livestock producers uniting to get ethanol subsidies reduced or killed. The demand for the alternative fuel is driving up corn prices and having big impacts on other parts of the economy. Not many other issues are capable of getting left-leaning economist Paul Krugman and the Cato Institute on the same side.
COnservatives have been singing "free-market" for years...
Singing to the corn farmers, who have been given so much cash that things like sugar farming are being driven out of the country? Ask yourself why we're using corn for ethanol when Brazil has shown that sugarcane can be used much more efficiently?
Down here in Texas, corn farmers struggle to convince their corn crops to live over the summer, but that's ok, because the feds will happily shell out cash for irrigation systems that weren't needed back when sugar was grown here. Up north, sugarbeets (also superior to corn for ethanol) used to hold sway, but increasingly farmers have been lured to the free money (on TOP of the rising corn prices).
The only tune conservatives (or liberals, or libertarians, or...) sing is "vote for me!"
Why not lobby to drop all farm subsidies, not just the ones for ethanol? It would take the same amount of effort and do even more good, as large, corporate farms are the ones who mainly benefit from them.
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... as the Scientific American special on the environment a few months ago concluded.
...
Ethanol production does not save anything, because current production methods, storage and distribution use as much energy (mostly natural gas, and fuel) as it saves.
The money would better be spend on R+D into new forms of ethanol production than buying votes in the mid-west
Start growing corn then.
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Maybe we can finaly stop paying farm subsidies. Quit growing tabacco and grow corn as a cash crop. Maybe a farmer can make a living again. The beef industry hates it of course because of higher costs. Expect prices to rise at the local hamburger joint due to rising costs.
http://en.wikipedia.org/wiki/Agricultural_subsidi
The truth shall set you free!
Holy crap, an "I work there" situation for ME!
Working for a corn refiner, I can tell you that though there is an increasing demand and price for corn due to ethanol plants spinning up, the glut of distillers grain/feed from their spent corn will be putting tremendous downward pressure on the animal-nutrition side of the market. In a wet mill, we depend on our co-products (corn hull, fiber, gluten, spent germ, everything but the starch really) prices rising and falling with the price of corn. Now we're having competition in the feed market from ethanol plants whos business models don't typically include needing to sell their feed. Granted, distillers grain is kind of gnarly (not as finely tuned as a wet mill's products) but typically farmers more interested in lower cost nutrition. And they're going to get it.
Note: This sig contains nine S's, nine I's and five O's which... means absolutely nothing.
Why not biodiesel, which works in all current diesel engines, and is much easier, cheaper and energy efficient (compared to ethanol) to produce? Long story short, you can get vastly more biodiesel per acre of land than you can ethanol, the diesel will run your engine for (at least) twice as long compared to ethanol, and you don't need a specially built environment-engine to run it. Almost any car model has a diesel engine option already. So why is everybody talking about ethanol? Why do ethanol cars get Eco-benefits? (Your own conspiracy theory goes here).