But not enough to keep prices down. We are also increasing exports, up about 27 percent since the ethanol insanity began. The rest of the world is just as crazy as our politicians are. That's why there are food shortages and prices skyrocketing everywhere. We are burning food.
If it were caused by speculators bidding up the prices in the absence of a demand then you would see huge surpluses because no one would be buying the excess. But that isn't the case. The grain is being burned.
And you know combine makers join right in, so that next years models will be $500,000 instead of 250,000.
Why do think the farmers are being shafted? If the demand for farm equipment increases, shouldn't you expect the price to increase? The manufacturers have limited capacity and they can't build new plants overnight. If supply is to meet demand then the price has to rise. You look for villains in all the wrong places. The problem is in the statehouses and in Congress.
When this bubble bursts, when people realize how stupid it is to try to use food for fuel, farmers are going to be hit so hard you won't believe it when prices drop like a stone.
I know prices will drop like astone but it isn’t the fault
of ethanol, it will be because speculators went elsewhere.
And we increased production to cover the extra exports also. I see the elevators and corn bins setting
around half full, enough to meet needs till
fall harvest. There is no shortage.. And farmers are
not going out and buying new combines just because of
a price bubble, but just as needed replacements at
a fairly steady level, same as before, replacing
worn out ones. But CEO syndrome in farm supply/middlemen
business says we get 250,000 for combine at 3 dollar
corn and 500,000 at 6 dollar corn. When corn takes a hit
will that come down, I doubt it. But it ain’t the fault
producing more corn for whatever use, it is speculators
screwing up the system. But if corn takes a hit
like back to 2 bucks the ethanol use will jump, farmers do
more to pay bills, and whatever shortfalls farm has between
cost, low price, back to price supports.Then hear bitching,
and even if you stopped ethanol the price is lower yet,
needing more price supports. This whole beating on ethanol bit is people thinking we are going to starve, so
when farm stuff crashes, they can’t let no farm fail,
so price supports. They get cheap food, and the 15%
to pay 80% of the taxes prop up farms so all those thinking they are poor/starving get good food prices.
Hell of a way to run a railroad as old
timers used to say..ED