More ethanol

[dun]

From Drovers Alert

Backlash against biofuels continues
As gasoline and diesel prices soar to new levels, and crude oil trades above $120 per barrel, the bloom comes off of ethanol and other biofuels. Almost as rapidly as people jumped on the ethanol bandwagon, it seems, people are jumping off. Last week USDA chief economist Joseph Glauber blamed biofuels for increasing prices on corn and soybeans. He also predicted that corn prices will continue to rise because of demand from "expanding use for ethanol."
Lester Brown, an environmental analyst who has written over twenty books on global environmental issues, wrote in the Washington Post that "it is impossible to avoid the conclusion that food-to-fuel mandates have failed." An editorial in yesterday's Wall Street Journal claims, "Corn ethanol can now join the scare over silicone breast implants and the pesticide Alar as among the greatest scams of the age." The WSJ also noted that Senator John McCain and 24 other senators are now urging EPA administrator Stephen Johnson to consider using his broad waiver authority to eliminate looming biofuel mandates. "Congress' ethanol subsidies are merely force-feeding an industry that is doing far more harm than good," according to the WSJ opinion. — G.H.

 

[john250]

This is possibly the beginning of the next big recession in AG.
We have a govt policy which has created massive distortions in the market.
Govt sees that it went too far too fast and begins to pull back, distorting the market in the opposite direction.
The commodities markets fall to about half of current prices, and grain farmers feel the pain. Ethanol plants, most still mortgaged, fail and rural communities and investors are looking at big job losses and equity losses.
I don't love ethanol. But an about face in the policy will trigger a LOT of financial pain.
Sure hope I'm wrong.

 

[backhoeboogie]

You are probably not John. Look at what the stocks are doing. Lots of folks are thinking the way you are.

Zinc has increased over 800%.

Look at what's happened to steel.

Sudden shifts are not going to be good and investors are going to become leary.

 

[Red Bull Breeder]

With millions already invested in corn ethanol, pulling back is really dumb. It going to hurt a lot of people. Just like our fine goverment get something started that screws things up then screw it up worse.

 

[bandit80]

The commodities markets fall to about half of current prices, and grain farmers feel the pain. Ethanol plants, most still mortgaged, fail and rural communities and investors are looking at big job losses and equity losses.
I don't love ethanol. But an about face in the policy will trigger a LOT of financial pain.
Sure hope I'm wrong.

Could be a likely scenario.

I've got alot of thoughts about ethanol, some good, some bad. I need to do more research before I make an educated guess as to wether not our current way of doing things is efficient or not. I raise corn and soybeans in addition to cattle. (I'm not on any grain farmer boards, so you people know where my heart is.) But I believe that the high price of corn has led to higher fertilizer and mineral prices, much higher cash rent, one of the many things effecting land values, thus directly effecting my cattle business. Alot of ground that has been in pasture or hay ground is being taken out and farmed in my area. It is to the point now, that if it can be farmed, it is, and a lot of acres that should be in grass aren't. It has made for hay shortages in our area, and paying out the nose for hay if you have to buy it.

I just hope is doesn't come crashing down as fast as it took the elevator up. There will be some very tough times for a lot of folks.

 

[TexasBred]

I don't see any bigger wreck than the one with subprime lending. Most of the folks getting hurt there are the ones that knew it wasn't right to begin with. They just wouldn't stop......When you have a mistake, the quicker it can be stopped and corrected the better. Do some more research and find a better, less expensive way to make alternative fuel thta doesn't effect so many people negatively. Then market it on an open market...not one mandated by govt.

 

[Anonymous]

With millions already invested in corn ethanol, pulling back is really dumb. It going to hurt a lot of people. Just like our fine goverment get something started that screws things up then screw it up worse.

Corn will be under three dollars a bushel by next spring. The etanol craze was a farce from the get go. Pension funds needed a place to go and so they took annd bought farmer owned etanol plants in Illinois and other places. Prior to buying these ethanol plants they had first invested heavily into corn futures. The truth is coming out and its long over due. Sorros a billionare who is currently behind the m&m and wrigley merger is to blame for the recent collapse and goverment bail out. He is also investing 400 million to buy the white house by backing barrack the wanna bee. Nothing is controlled any more by the common man. PEOPLE like sorros need to be locked up and the key thrown away.

People who have invested heavily into producing corn are going to get caught in the down turn and loose their britches.

There are 35 million acres in crp set aside there will be a mandate within the next year and a half abolishing these programs also. They will be planted in switch grasses and other things that are better than corn for ethanol. Doing this will eliminate the need of worrying about these lands washing away while helping our energy needs. These grasses will be subsidized for a while with the crp money.

World leaders are already demanding the change from corn to other sources of ethanol that dont cut back on human and animal needs.

 

[somn]

Dun you must really like the taste of MTBE huh. You are one of the biggest whiners on here when it comes to ethanol.

 

[dun]

Dun you must really like the taste of MTBE huh. You are one of the biggest whiners on here when it comes to ethanol.

You've never seen me comment on ethonal other the the gorundwater issue for the processing plants. I just post articles that come up.

 

[somn]

Dun you must really like the taste of MTBE huh. You are one of the biggest whiners on here when it comes to ethanol.

You've never seen me comment on ethonal other the the gorundwater issue for the processing plants. I just post articles that come up.

You are probably right dun you don't actually do the whining yourself you just post articles written by the whiners. You are in essence a supporter to the ethanol whiner.

 

[dun]

You are probably right dun you don't actually do the whining yourself you just post articles written by the whiners. You are in essence a supporter to the ethanol whiner.

Sorry, I forgot that anyone that doesn;t see things exactly your way are all whiners. I'll try to remember that in the future

 

[somn]

Propaganda Dun that is all you are doing spreading propaganda the ethanol supporters could sit here all day and post atricles defending ethanol just like your are posting against it. You are trying to instill fear in the eyes of the American consumer. Why don't you post every article talking about how the high price of oil is hurting the American consumer. Do I detect a slight scent of favoritism to the oil industry on your part Dun?

I am a member of the the American Agriculture sector. I support Ag. Whatever kind it may be. I honestly could care less how much food costs in town I could care less how many third world countries are starving. I am tired of paying rediculous amounts of money to foreign countries for oil while receiving next to nothing for the commodities that I produce. Trust me food is far more essential than oil. Hold out on food for higher prices and you will get them. Problem is we have people like you Dun who think we should just give our food away.

Everyone thinks that ethanol is hurting the cattle industry maybe it is short term welcome to the real world when the corn farmer stuggled and everyone else lived high on the hog nobody cared about the price of corn but the government did so they subsidized the corn farmer so he would continue to produce cheap food for the world. In doing so they presented an opportunity for idiots in America to complain about the taxpayer giving money away to the farmer. Now my guess is the same very people that piss and moaned about the subsidy to keep prices low are the same people that are pissing and moaning about ethanol causing high food prices. How does that line go have your cake and eat it too.

As a feedlot owner I loved the cheap price of corn when it was cheap. I hate the high price of corn. My input costs for feed have went up 350% since 2005. Learn to live with it. Members of the ag community deserve to live a good life we feed the world. The cattle industry has had a good run the last ten years. Now it should be someone elses turn. If that good life has to come at the price of city folks driving a less expensive car so be it if they have to live in a smaller house so be it. I'm tired of sacrificing so city people can live lavishly.

As far as third world countries starving oh well it is something called carrying capacity. They have populated well over it a thinning of the herd might be in order. If they don't want to thin the herd that is fine it doesn't need to come at my expense I see no need to give away my commodities just so people like Dun can use it to further his argument against ethanol. Go get yourself a bowl of sweet crude and a nice ribeye steak. Tell me which one is more essential to sustain life. After you figure that out maybe you will no who you should support ag or oil.

Further more the weakness in the value of the American dollar and high global demand for food is what has caused higher food prices not ethanol. Worse yet look around in America you will see atleast 5 overweight people for every starving one. The grocery stores are full of people buying things they don't need. People need to stop whining about the high price of food when buying things they didn't need in the first place.

Maybe I'm wrong maybe it should go back to your way of thinking Dun shut down every ethanol plant. Then we will have ground water contaminated by MTBE everywhere, still have high food prices in the store and even higher oil prices to go along with it. Then we can sell our ag commodities into the export market for pennies on the dollar so we can feed the starving third world countries who will work for nothing and steal all of our manufacturing jobs. Brilliant plan seems to have worked well in the past. By the way the price of a barrel of oil is expected to reach $200 a barrel within 2 years or less. I bet you think that is ethanols fault too right? Propaganda Dun Propaganda. Over 18850 posts some might actually believe you to be telling the truth based upon that.

 

[bandit80]

Can we just lock this before it gets ugly??? :|

 

[TexasBred]

Heck I was waiting for Somn to say what was on his mine. :|

 

[Miss Daisy]

You are probably right dun you don't actually do the whining yourself you just post articles written by the whiners. You are in essence a supporter to the ethanol whiner.

Sorry, I forgot that anyone that doesn;t see things exactly your way are all whiners. I'll try to remember that in the future

what a waste of an apology, even if it was sarcastic.

 

[dun]

Problem is we have people like you Dun who think we should just give our food away.

Maybe I'm wrong maybe it should go back to your way of thinking Dun shut down every ethanol plant.By the way the price of a barrel of oil is expected to reach $200 a barrel within 2 years or less. I bet you think that is ethanols fault too right? Propaganda Dun Propaganda. Over 18850 posts some might actually believe you to be telling the truth based upon that.

I am just glad you know what I'm thinking about every subject.
I have always posted the source of the articles, that doesn;t make it MY position. If you don;t like the positions stated in the articles, post some from the opposing point of view. That's what a dialogue is. Sharing of differing views.

 

[Mod2]

Can we just lock this before it gets ugly??? :|

Excellent suggestion