Gore admits mistake.

[kenny thomas]

.From LMA website:
Gore: corn-based ethanol subsidies a mistake
Former U.S. Vice President Al Gore recently said "It is not a good policy to have these massive subsidies for (U.S.) first generation (corn-based) ethanol." His admission comes weeks before ethanol tax credits are up for renewal on Dec. 31. The livestock and meat industry has opposed the subsidies and tax credits, saying they divert massive amounts of corn away from livestock feed, thus raising the cost of corn and meat prices paid by consumers.
Gore told a recent Georgia business conference "one of the reasons I made that mistake" of supporting the subsidies "is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa, because I was about to run for president." As vice president, Gore cast the decisive 51st vote for the ethanol tax credit in 1994. Tax breaks for using ethanol make it profitable for refiners to use it, even when it is more expensive than gasoline.
Total U.S. ethanol subsidies in 2009 reached $7.7 billion, according to the International Energy Industry, which said biofuels worldwide received more subsidies than any other form of renewable energy.(quote)


Who would have believed it?

 

[3waycross]

.From LMA website:
Gore: corn-based ethanol subsidies a mistake
Former U.S. Vice President Al Gore recently said "It is not a good policy to have these massive subsidies for (U.S.) first generation (corn-based) ethanol." His admission comes weeks before ethanol tax credits are up for renewal on Dec. 31. The livestock and meat industry has opposed the subsidies and tax credits, saying they divert massive amounts of corn away from livestock feed, thus raising the cost of corn and meat prices paid by consumers.
Gore told a recent Georgia business conference "one of the reasons I made that mistake" of supporting the subsidies "is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa, because I was about to run for president." As vice president, Gore cast the decisive 51st vote for the ethanol tax credit in 1994. Tax breaks for using ethanol make it profitable for refiners to use it, even when it is more expensive than gasoline.
Total U.S. ethanol subsidies in 2009 reached $7.7 billion, according to the International Energy Industry, which said biofuels worldwide received more subsidies than any other form of renewable energy.(quote)


Who would have believed it?

The horses a$$ musta had an ulterier motive for that admission or he wouldn't have said it.

 

[Workinonit Farm]

Who would have believed it?

I, for one, am shocked. :cowboy:

Katherine

 

[kenny thomas]

Maybe another run for president?

 

[1982vett]

Don't be fooled....wait to see what he say's tomorrow. :?

 

[Jogeephus]

At least he was telling the truth about global warming.

 

[robert]

Algore's a partisan hack? who'd have thunk it? :roll:

 

[tripleBfarms]

Cut him some slack, after all, he invented the internet. :compute:

 

[lavacarancher]

At least he was telling the truth about global warming.

:lol: :lol: :lol: That's a good one, Jogee.

 

[john250]

Pretty refreshing, isn't it.
The Corn growers lobbied Congress through years and years of $2-$2.50 corn prices and they would have thrown a party to celebrate an increase of $.25 in the annual average price. Came a perfect storm of dependence on foreign oil, short supplies, terrorist attacks and etc. Congress got in a mood to proclaim enery independence and blend mandates and ethanol went over the top.
Of course, when corn prices exploded corn expenses also exploded and now, $4/bushel is barely breakeven on good yields.
Reforming the system of presidential primaries would go a long way toward solving this silliness. Iowa (and if it has to be one state with undue influence I'd choose Iowa second after Indiana) has way too much influence on this process.
Ethanol comes at the expense of animal ag, and I'll miss steak more than I would miss the F-250.
We'll all really miss meat when it's not affordable.

 

[kenny thomas]

From the AgCenter website:
December corn fell in active trading. New optimism that the ethanol subsidies may expire was increased when a bipartisan letter from 16 senators sent the request to Senator Reid.

 

[Commercialfarmer]

The changed attitude may have more to do with the lose of those "tax credits" ?

 

[Jalopy]

If Congress does not extend the subsidies lookout for fallout. The corn price will fall. Land prices will fall. and the ethanol industry will reorganize again. I think the majority of the damage will be psychological in the short term but over time it will work out to be a positive event, especially to animal agriculture. JMHO and worth every cent you paid for it

 

[Angus Guy]

You might be right about lower feed prices. But what happens if corn and soybean prices fall and land prices drop? You could very easily see your net worth and borrowing capacity drop to the point that your cow herd will not sustain itself. Granted I would like to grain prices fall back some but not to the levels that it will be if the subsidies are removed.

 

[Jalopy]

AG I don't disagree with you. I just wonder sometimes why we have subsidies that steep for one crop anyway. I do not think an all or nothing vote on the subsidy would be the right thing to do but maybe a weaning off of them at a slow rate would be a starting point. A sudden stop could send agriculture into a deflationary spiral that would make the 80's look like a picnic.

 

[Angus Guy]

I agree with a weaning off. With that in mind wouldn't it work with oil industry to? I think so but I don't think it would even come close to vote.

 

[Jogeephus]

I'm not so against price supports but I do think a good start would be to get rid of crop insurance. It amazes me how someone can draw an insurance check for crop failure in one field yet right across the road their field yields nearly twice as much as it normally would. Am also confused on how the taxpayer can pay a huge some of money for a person's failed pumpkin crop when the person never bought any seed. Of course it does make you stop and rethink the definition of air planters if you know what I mean.

 

[backhoeboogie]

If we could get a subsidy for mesquite trees and prickly pear, I'd get rich.

 

[john250]

I'm not so against price supports but I do think a good start would be to get rid of crop insurance. It amazes me how someone can draw an insurance check for crop failure in one field yet right across the road their field yields nearly twice as much as it normally would. Am also confused on how the taxpayer can pay a huge some of money for a person's failed pumpkin crop when the person never bought any seed. Of course it does make you stop and rethink the definition of air planters if you know what I mean.

There doesn't seem to be any motive to police crop insurance. I'm aware of fields which "always" fail. The farmers can still get insurance. If you had a car crash 10 yrs running you would be asked to find a new insurer. Apparently the insurance subsidy is good enough that insurers will write the policy just to get the business.
USDA never checks, either.
Direct subsidies go to landowners, either because they farm or because the subsidy gets bid into the rents they receive.
Insurance supports the actual grower by making it easier to justify millions in equipment and operating expense to a banker.

 

[kenny thomas]

From agcenter.com:
ETHANOL SUBSIDIES AND TARIFFS

The late week spurt in corn prices was a quick reminder of the threat to food cost posed by ethanol production. This week's rally was more in sympathy with global concerns for the wheat stocks but ethanol demand remains in the background as a constant push to corn prices.

Politicians and lobby groups are taking up the cause of rapidly rising deficits and parallel rising food costs. A broad coalition of conservative and liberal groups called for an end to ethanol subsidies and import tariffs. Environmental groups are joining forces with meat lobbyists to let the subsidies expire this year without renewal.

The backoffice deals are fast and furious with the following proposals on the table.

•Iowa senators are calling for renewal of the same level subsidies as you would expect from a corn state senator.

•17 Senators from all political persuasions drafted a letter calling for letting the subsidy and tariff expire this year.

•A plan to reduce the subsidy to 30 cents from the current 45.

•A plan to reduce the subsidy to 37 cents.

Congress's failure to present any plan would naturally let the subsidy expire and remove the tariff. Political watchers have learned to never depend on the rational response to lawmaking. The beef industry has continually backed an end to the supports that almost all economist have deemed bad for the environment, a proven threat to food costs, and uneconomical in attempting to relieve dependence on foreign oil.

The extension of the Bush tax cuts will remain front and center and it is likely no legislation will occur this year until this issue is resolved. Also looming in the background are death taxes that also are set to expire this year, returning estate taxes to the 55 percent level.

In a surprising development, Obama seems to be backing away from the supports for ethanol subsidies. It may be that this is a sign of movement back to the center of the political spectrum following the recent election. One can only hope for some reason to enter the minds of legislators as they represent the country's best interest.