Well we’ll try again.. Right, it is demand, and the
greedy speculators have poured so much money into farm commodities and promoted so many excuses, and rumors,
to keep driving prices up. One rumor is that their
will be a huge cut in acreage when in reality it will
still be 9% more than 06.But those reports don’t bear out
what farmers are doing here. They’ve created an
artificial demand, just like middlemen.
But even corn, a bushel of corn, going from
3 bucks to 6 bucks isn’t the reason that middlemen getting 200 bucks, went to 300 and heading for 400, GREED is the reason. There is no shortage, we are still exporting,
there is surplus corn products still going to food
pantries.
You all holler about what it it costs to grow, but that is going to be spent anyway, for whatever raised on the land.
We produce 400,ooo barrels ethanol per day, plus
same process makes cattle feed, etc, And other products
bring as much money as ethanol. That many barrels
is 25-30 billion we don’t have to pay nutcakes.
You holler about subsidies.There is no subsidy for
corn, no price supports. Big oil gets a blending
tax credit of 3 billion a year.But they get 30-40 times
that much in oil tax breaks/credits from the tax code.
You complain gov mandated use, Oxygen carriers are mandated
to make cleaner burning and help cut air pollution.
Which it does, where used in place of other ones that are
poisons, cancer causing and pollutes the water.
And right now ethanol is about a buck per gal less than pump price, so it is helping to keep prices down where it is blended 10% for oxygenation. All my V8s run better on the 10% blend.
Farmers for years spent $2.50 per acre to raise corn and got 2 bucks, now with energy dring up costs they
spend $ 3.50 and over the last year got $4. They
are a viable operation now not needing supports, buts
a lot of these farm bashing articles are promoted
by greenies who don’t want farms strong, don’t want land
out of CRP and back into farming. Like 30 million
acres and going down. That is a huge part of farm bill
paying not to farm 30 million acres, and food stamps are
another huge part of farm bill, but the liers lump it
all as a subsidy for ethanol. If that land was back in
we could have ethabol 10% in all gas, and 10% more
of wheat, soybeans, and hay. All of these crazy
articles and rumors and you crazy reaction to
them plays into the hands of speculators and middlemen
making prices worse........Ed
You got that exactly right. The artificial demand is government mandated ethanol requirements in gasoline. If it were simply speculation, then grain would be overflowing the silos as speculators bought grain that they cannot sell. Instead grain is being sent to ethanol plants to be burned as fuel.
There is no way in the world that ethanol would be used for fuel in cars if it weren't for government subsidies, tax credits or mandates. That's because it makes no sense economically.