[thackney]

The problem here is we won't buy ethanol from anyone but corn producers. Brazil wants to export to us, but we won't lower the import tax.

In 2006 we imported 3.5 Billion liters (925 Million Gallons) of ethanol from Brazil. They do more than want to; they export more to us than anywhere else.

US is largest, but Brazil most efficient ethanol producer

[chuckles]

The prez just left the Brazilians mad because they wanted the 54 cent a gallon tax lowered. They have the ethanol, we don't want it. The corn producers are the problem. If ethanol can be produced below $1 a gallon, why is it over $2 on the futures price(2.32 as I write)? We use corn at $4 a bushel and they use cane at a dirt cheap price is why.

It's all to protect a few votes in the midwest. If we are going to do this, you have to jump in with both feet. Right now, this morning, refined sugar is about 10 cents a pound. At 10 pounds per gallon of ethanol, thats $1 a gallon with a refined product. You don't need to refine it before fermentation, but that just shows how cheap it can be if we weren't propping up the corn farmers. In Brazil, ethanol is 1/2 the price of gasoline and they export a surplus.