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To: TKDietz

google ethanol subsidies,and read awhile. the cato institute did a report years ago on ADM and how much they get - it was disgusting. I wish they'd do a new one.

The amount of ethanol subsidies, the impact of mandate (and effects on the free market and personal choice) and the environmental impact are all things the ethanol lobby and their acolytes try to hide or deny.

You know, ethanol right now strikes me along the lines of trans fats- something the liberals, nannies, and government wanted, and now they all say it's evil. I don't know if that will ever happen with ethanol though, as long as politicians can buy iowa, and adm can buy politicians.


65 posted on 12/11/2006 9:43:41 AM PST by flashbunny (If the founding fathers were alive today, they'd be buying feathers and boiling tar.)
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To: flashbunny
You didn't answer my question. The correct answer would be that ethanol producers get no federal subsidies unless they are actually the ones blending the ethanol with gasoline. Then they'd be getting a tax credit.

I don't like the subsidies either. I wish the government would phase them out. I think the ethanol industry could make it without the subsidies to corn farmers or the $.51 tax credit to blenders. If corn prices stay high, the subsidies to corn farmers should disappear for the most part, at least those paid out to make up the difference between the actual market price and the price government sets. That's the bulk of the subsidies paid to corn farmers. A while back they were getting $.14 a bushel, but that was when corn was much cheaper. I don't know what they'll get now but if they get anything it shouldn't be much. Next the government needs to phase out the $.51 tax credit that blenders get. That will be tough on the ethanol industry because they'll have to keep costs down enough such that they can still make a profit and sell their product cheap enough that consumers will still buy it. Some ethanol producers would fold, but I think most would adapt and make it. Ethanol is not that expensive to produce and they are figuring out new ways to reduce costs all the time.
77 posted on 12/11/2006 10:07:41 AM PST by TKDietz (")
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