Posted on 01/24/2007 12:59:25 PM PST by kellynla
WASHINGTON -- The fuel ethanol boom and high crop prices will cut U.S. farm subsidy spending by $31 billion through 2016, a dramatic drop in the cost of the farm program, the Congressional Budget Office said on Wednesday.
In a semiannual report, CBO estimated farm subsidies would cost $10 billion this year and the annual cost "will range between $8 billion and $10 billion over the next decade."
The forecasts are expected to constrain this year's overhaul of farm policy by Congress. The 2002 farm law, which allocates about $20 billion a year on farm supports, expires in the fall.
Large U.S. farm groups want to maintain the current crop support system. The American Farm Bureau Federation asked on Dec. 6 that Congress and the Bush administration assure that funding "be sustained at levels authorized in the 2002 farm bill with adjustment for inflation."
Congress has a target of agreeing by April 15 on a spending outline. Leaders of the House and Senate Agriculture committees say they will not begin work on farm subsidy programs until it is clear how much money will be available.
"Projected spending . . . has declined by $31 billion for the 2007-2016 period," said the CBO report. "That reduction primarily reflects lower income-support payments to farmers for major crops because commodity prices are now expected to be higher than previously anticipated.
"In particular, CBO has reduced its estimates of support payments to corn producers as a result of stronger demand for ethanol."
Corn prices have doubled since last fall and are the highest in a decade. Soybean and wheat prices rose as well, pulled up by corn.
We are already bringing the discharge steam down to condensate at about 28" Hg vacuum and at less than 100 degrees F to maximize the efficiency of the steam cycle. Now think. We immediately heat the water back up under pressure to about 450 degrees. Any energy you took out of that water. Any energy that we took out of this feedwater, would have to be added back as reheat.
Note: this topic is from January 24, 2007.Thanks kellynla.
"Projected spending . . . has declined by $31 billion for the 2007-2016 period," said the CBO report. "That reduction primarily reflects lower income-support payments to farmers for major crops because commodity prices are now expected to be higher than previously anticipated. In particular, CBO has reduced its estimates of support payments to corn producers as a result of stronger demand for ethanol." Corn prices have doubled since last fall and are the highest in a decade. Soybean and wheat prices rose as well, pulled up by corn.Ethanol didn't do anything of the kind, of course -- agricultural production costs rise and fall with petroleum prices.
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