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To: plain talk

You do know that most of the “ethanol subsidy” is a tax break to oil refiners who blend ethanol with gasoline, right?

So all this huffery and puffery here on Free Republic about “removing the subsidies for ethanol” is mostly about removing the blenders’ credit. Farmers get no subsidy for growing “corn for ethanol.” They get subsidized crop programs for growing crops, period. Where the corn goes when the farmer decides to sell it is pretty much a function of basis and current commodity prices, including gasoline.


71 posted on 05/31/2011 3:32:47 PM PDT by NVDave
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To: NVDave
Where the corn goes when the farmer decides to sell it is pretty much a function of basis and current commodity prices, including gasoline.

Not exactly, food corn varieties are not ideal for ethanol production, so most farmers intending for the ethanol market grow ethanol preferred varieties. They are different commodities but still corn.

Farm subsidies are definitely on the table, and definitely should be. The free market should prevail wherever possible, but farmers are not all bad guys, and farming has specific risks that need to be addressed.

81 posted on 05/31/2011 3:48:46 PM PDT by Navy Patriot (Sarah and the Conservatives will rock your world.)
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