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Discussion Starter #21
Let me explain the government subsidy for Ethanol.

The subsidy gives the OIL companies a break for utilizing ethanol blends. It also has restrictions on the importation of ethanol into the states (Brazilian sugar cane ethanol to be exact).

There really isn't anything that goes to the farmers. Now, without the Renewable Fuels Act, ethanol will most likely be nothing more than an MBTE substitue and a niche fuel for guys like me, IF oil stays down.

Oil goes back up, ethanol becomes a viable economical alternative.

I am all for bringing in Brazilian ethanol. It is cheaper and more efficient. Lets eat corn, and make ethanol out of something more efficient. The corn price will temporarily drop due to reduced demand, but will steady again, much like our economy.
 

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Some of the breaks that "Big Ethanol" gets are in plant emissions. Something to the effect of doubling pollutants in stack emissions like SO2, NOx, and other particulates.
Most of your ethanol plants burn natural gas. There are some that burn coal.

All of you thinking that this is great for all farmers need to talk to your local Cattleman's association. They seem to see ethanol differently from the corn growers.
 

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Discussion Starter #23
Your point about the cattle is somewhat valid. Ethanol actually brought cattle BACK to central Iowa, as the DDG's can be fed with greater efficiency than corn.

That doesn't help the producer in Kansas or anywhere there is not an ethanol plant.

Good point, though.
 
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